Firm A and B are exactly the same size as are Firm C and Firm D. Firm

Question:

Firm A and B are exactly the same size as are Firm C and Firm D. Firm A acquires for cash 100 percent of the of Firm C. Firm B acquires 100 percent of Firm D by exchanging one share of its own stock for each share of of Firm D. Are there differences in relevant circumstances between these two transactions? Explain.
Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on...