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Which of these statements are correct? When an acquiring firm is making the decision whether to offer cash or stock for a target, it should

Which of these statements are correct?

When an acquiring firm is making the decision whether to offer cash or stock for a target, it should be more inclined to offer cash if

  1. The stock market is in a bubble
  2. There is a higher level of confidence in the acquisition creating value
  3. The acquiring firm has relatively low debt-to-equity ratios
  4. The target is larger

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