Which of the following statements is correct?

Group of answer choices

The exchange ratio is the cash offered for each share of the target firm.

In a cash bid, the target firms shareholders also bear the risk that the acquisition synergies will not materialize.

None of the other answers is correct.

In a floating share bid, the number of shares that will be issued to the shareholders of the target firm are fixed.

In a share bid, the acquiring firm offers its own shares in exchange for the shares of the target firm.