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A tax-free acquisition will be preferable to a taxable acquisition when: A. The shareholders in the target firm want to stay involved with the merged

A tax-free acquisition will be preferable to a taxable acquisition when:

A. The shareholders in the target firm want to stay involved with the merged firm

B. The acquiring firm values the synergies more highly than the target firm

C. The shareholders in the target firm are unafraid of taking a capital gain

D. The target firm has many depreciable assets on its books at below market value

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