Which one of the following statements is correct if Firm A is acquiring Firm B? O 1) If stock is used to finance the acquisition, the transaction is probably taxable. 2) The incremental increase in value will benefit both the shareholders in Firm A and in Firm B if the acquisition is financed with cash. 3) Management in Firm A may change if the acquisition is financed with stock. 4) A merger financed with stock is always preferable to a merger financed with cash from the viewpoint of the shareholders in Firmb. 5) If the merger creates losses, the shareholders in Firm A will be better off if the merger is financed with cash rather than with stock