A. Purchasing a corporation usually constitutes a very large capital investment decision, so it requires a more accurate estimate of value that includes careful analysis of both operational aspects of the firm and the ultimate cash flows the deal will generate. B. A stock - swap merger is a positive - NPV investment for the acquiring shareholders if the share price of the merged firm (the acquirer's share price after the takeover) exceeds the premerger price of the acquiring firm. C. If we view the pre bid market capitalization as the stand - alone value of the target, then from the bidder's perspective, the takeover is a positive - NPV project only if the synergies created do not exceed the premium it pays. OD. Once the acquirer has completed the valuation process, it is in the position to make a tender offer that is, a public announcement of its intention to purchase a large block of shares for a specified price