An article was written by Tim discussing how Schwab's recent all-stock offer for TDAmeritrade violates Warren Buffet's biggest rule with respect to acquisitions recently (i-e November 25, 2019) appeared on CNBC.com. Three quotes by Warren Buffet excerpted from that article appear below. Your company's CEO is intrigued by Buffet's comments. She wants to know whether you agree or disagree with each of Buffet's statements an has asked that you write a paragraph in support of your position with respect to each of the quotes.

a) "If a company is in a position to buy a rival, it's probably in better shape than the target is, and that means its stock is worth more of a premium. Paving cash helps the acquirer avoid giving away the appreciation of its existing business to holders of the company getting bought out, which, if you are doing it right, is larger than the gain likely to come from acquisition."

b) "Dividends should be paid in cash only when the company does not have a better plan to invest the money in its own business."

c) "By making (share) repurchases when a company's market value is well below its business (or intrinsic) value, management clearly demonstrates that it is given to actions that enhance the wealth of shareholders, rather than to actions that expand management's domain but that do nothing for (or even harm) shareholders. Investors should pay more for a business that is lodged in the hands of a manager with demonstrated pro-shareholder leanings than for one in the hands of a self-interest manager marching to a different drummer."