Suppose a target firm has had profitable operations for many years in a field requiring intensive amounts of PP&E (plants, property, and equipment). Considering only the tax implication of stakeholders in a bid:

a.The bidder is likely to prefer using predominately cash, while target shareholders are not likely to prefer this

b.The bidder is likely to prefer using predominately shares, while target shareholders are not likely to prefer this

c.The bidder is likely to prefer using predominately cash, and target shareholders are likely to prefer this

d.The bidder is likely to prefer using predominately shares, and target shareholders are likely to prefer this