Question: Firm A and B are exactly the same size as are Firm C and Firm D. Firm A acquires for cash 100 percent of the

Firm A and B are exactly the same size as are Firm C and Firm D. Firm A acquires for cash 100 percent of the of Firm C. Firm B acquires 100 percent of Firm D by exchanging one share of its own stock for each share of of Firm D. Are there differences in relevant circumstances between these two transactions? Explain.

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