4. Taxes and takeover bids Aa Aa In a merger, the acquiring firm can either pay in cash or make a stock offer. The acquirer can purchase the target firm's assets or buy shares directly from the target firm's shareholders. True or False: The structure of the takeover bid (cash versus stock) does not affect the tax status of the target firm's shareholders. O False True A takeover bid can be structured in different ways, making it either a taxable or a nontaxable offer. Based on your understanding of the impact of takeover bids on the target and the acquiring firms, complete the following diagram and then check which statements are correct in the Statements column. Check all that apply. 4. Taxes and takeover bids Aa Aa In a merger, the acquiring firm can either pay in cash or make a stock offer. The acquirer can purchase the target firm's assets or buy shares directly from the target firm's shareholders. True or False: The structure of the takeover bid (cash versus stock) does not affect the tax status of the target firm's shareholders. O False True A takeover bid can be structured in different ways, making it either a taxable or a nontaxable offer. Based on your understanding of the impact of takeover bids on the target and the acquiring firms, complete the following diagram and then check which statements are correct in the Statements column. Check all that apply