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Question 3 Use the analyses and results of the paper to justify the following statement: An acquirer firm must use stock as the payment method

Question 3

Use the analyses and results of the paper to justify the following statement:

An acquirer firm must use stock as the payment method to acquire a foreign target firm when the foreign country in which the targeted firm is located has higher relative governance risk than the acquirers country does.

Do you agree or not agree with the statement? Explain your reasons.

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