Question
Which of the following statements accurately describes an advantage associated with an acquisition via a share offer relative to a cash offer? Group of answer
Which of the following statements accurately describes an advantage associated with an acquisition via a share offer relative to a cash offer?
Group of answer choices
(a) The share offer ensures that the voting power of the original shareholders in the bidding firm is not diminished following the acquisition.
(b) In the presence of information asymmetry, the share offer tends to send a very positive signal to the market about the bidders current share price.
(c) Share offers tend to be more popular than cash offers when bidding firms have excess cash that cant be profitably invested elsewhere.
(d) More than one of the above.
(e) None of the above
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started