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Which two of these are required for an acquisition to be considered tax-free? I. The bidder must purchase the target firm for less than its
Which two of these are required for an acquisition to be considered tax-free?
- I. The bidder must purchase the target firm for less than its current market value.
- II. The acquisition must have a business purpose other than the avoidance of taxes.
- III. The stockholders in the target firm must retain an equity interest in the bidder.
- IV. The acquisition must be a lump sum cash transaction.
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