The bidder merges the target into itself with the target as the surviving entity. The bidder creates a holding company and operates the target as a standalone entity. The bidder merges the target into itself, with the bidder as the surviving entity. Question 4 3 pts Which of the following is true of collar arrangements? O A fixed value agreement one in which the number of acquirer shares exchanged for each target share is unchanged between the signing of the purchase and sale agreement and closing A fixed value collar agreement guarantees that the target firm shareholders receive a certain dollar value in terms of acquirer stock as long as the acquirer's stock price remains within a narrow range around the effective date of the merger. O A fixed value collar agreement may involve a fixed exchange ratio as long as the target's share price remains within a narrow range around the effective date of merger. O Collar agreements provide for certain changes in the exchange ratio contingent on the level of the target's share price around the effective date of the merger. O Floating share-exchange collar agreements are more common than fixed share-exchange agreements. D Question 5 3 pts The letter of intent often specifies the type of information to be exchanged as well as the scope and duration of the potential buyer's due diligence. True