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drop down options midway are taxable or nontaxable dropdowns for second question are taxable or nontaxable In a merger, the acquiring firm can either pay

drop down options midway are taxable or nontaxable
image text in transcribed
dropdowns for second question are taxable or nontaxable
image text in transcribed
image text in transcribed
In a merger, the acquiring firm can either pay in cash or make a stock offer. The acquire can purchase the target firms assets or buy shares directly from the target firms shareholders.
True or false; the structure of the take over bid (cash versus stock) affects the capital structure of the post merger firm?
I takeover bid can be structured in different ways, making it either a taxable or nontaxable offer. Based on your understanding of the impact of take over bids on the target in the acquiring firms, answer the following
question and then check which statements are correct.
The acquire purchases the target firms shares with either cash or non-voting securities, such as debt securities, non-voting preferred stock, or warrants.
This transaction is blank for the target firm shareholders. The blank options are taxable or nontaxable.
I have taken a picture of the last part of the question to check all that apply for each statement the image is clear can you zoom?
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4. T axes, and laknover bids. from the target firm is shareholdert. E than Tha Mrroer I axi ifeets wat ack. 1Fis eranactinn is for the taget fine o derehuders 4. Taxes and takeover bids 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) affects the capital structure of the postmerger firm. False True A takeover bid can be structured in different ways, making it either a taxable or a nontaxatile offer Based co your understancing of the impact of takeover bids on the target and the acguiring firms, answer the following question and then check which statements are correct. The acquirer purchases the target firm's shares with either cash or norvoting securities, such as debt securities, norvoting vreferrod stodk or warrants. This transaction is for the target firm's shareholders. Statements Check all that a9eky. The purchase will be recorded using the pooling of interests mettod rather than the purchase method. Target shareholders tender their shares, recelve thelr cash, and pay oersceal tasces ch ary reasised capital gains. If the acquiring firmi makes a sartial cash down paymsint, the transaction is treated as an instaliment purchase, and the shareholdars can spread their tax listinty over the acquieing firin's parment period. The acauiring firm adds the acouired asets to ts books at their apralsed far market valies. The acquiring firm adds the acquired assets to its books at thei book yal bes: This transaction is for the target firm's shareholders. Statements Check all that apply. The purchase will be recorded using the pooling of interests method rather than the purchase method. Target shareholders tender their shares, receive their cash, and pay personal taxes on any realized capital gains. If the acquiring firm makes a partial cash down payment, the transaction is treated as an installment purchase, and the shareholders can speead their tax liability over the acquiring firm's payment period. The acquiring firm adds the acquired assets to its books at their appraised fair market values. The acquining fim adds the acquired assets to its books at their book values

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