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Which of the following is not true of a taxable purchase of stock? a. It generally does not permit a basis step-up of the targets

Which of the following is not true of a taxable purchase of stock?

a.

It generally does not permit a basis step-up of the targets assets.

b.

All target stockholders are affected equally.

c.

It usually involves the purchase of the targets stock with cash.

d.

It usually involves a tender offer for the targets shares.

e.

The target firm does not pay any taxes on the transaction.

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