Question: There are 3 ways to finance an acquisition: i. By using cash only via debt ; ii. By using stocks; iii. By using cash via

There are 3 ways to finance an acquisition:

i. By using cash only via debt ; ii. By using stocks; iii. By using cash via debt and stocks.

i) Briefly explain when each strategy should be used in an acquisition and what are the economic and financial conditions required for each strategy to work effectively. Also, Explain which strategy is ideal at the pick of a merger wave.

ii) Suppose you are the owner of British Airways which is the best way to finance an acquisition during the COVID-19 pandemic period and why? Suppose you are the owner of Tesla cars, which is the best way to finance an acquisition during the COVID-19 pandemic period and why?

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i i Using cash only is the simplest way to finance an acquisition It involves paying for the acquisition entirely with cash reserves or cash raised from the sale of existing assets This strategy is su... View full answer

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