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Which one of the following statements is correct concerning acquisitions? Multiple Choice Acquisitions done utilizing shares of voting common stock have no effects on the
Which one of the following statements is correct concerning acquisitions?
Multiple Choice
Acquisitions done utilizing shares of voting common stock have no effects on the control of the postmerger firm.
Acquisitions done on an all cash basis are generally considered nontaxable events.
If the acquisition is done on an all cash basis the shareholders of both the acquirer and the acquired firm will gain from any realized future benefits of the merger.
The capital structure of the postmerger firm will be the same whether an acquisition is done on a cash basis or on a stock basis.
If the acquisition is done on an all cash basis the shareholders of the target firm are excluded from any losses resulting from an unsuccessful merger.
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