a. Why does the true cost of a stock acquisition depend on the gain from the merger?

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b. What are some important factors in deciding whether to use stock or cash in an acquisition?

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Fundamentals Of Corporate Finance

ISBN: 9780072553079

6th Edition

Authors: Stephen A. Ross, Randolph Westerfield, Bradford D. Jordan

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Question Posted: Oct 05, 2023 05:05 AM

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a. Why does the true cost of a stock acquisition depend on the gain from the merger?

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a The true cost of a stock acquisition depends on the gain from the merger because when a company acquires another company using its own stock it effectively issues new shares to the shareholders of t...View the full answer

Fundamentals Of Corporate Finance

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