anwser all three parts please 4. Taxes and takeover...

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anwser all three parts please
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4. Taxes and takeover bids In-a merger, the acquiring firm can either pay in cash or make a stock offer. The acquirer can purchase the target firm's assets or buy shares directly from the target firm's shareholders. True or False: The structure of the takeover bid (cash versus stock) does not affect the tax status of the target firm's shareholders. False True A takeover bid can be structured in different ways, making it either a taxable or a nontaxable offer, Based on your understanding of the impact of takeover bids on the target and the acquiring firms, answer the following question and then check which statements are correct. The acquiring firm purchases the target firm's shares with elther common stock or voting preferred shares. This transaction is for the target firm's shareholders. Statements Check all that apply. The acquiring firm adds the acquired firm and its assets to its books at their appraised fair market values. The purchase will be recorded using the purchase method rather than the pooling of intereats method. The acquiring firm adds the acquired assets to its books at their book values. Target shareholders tender their shares and recelve shares of the acquiring firm and pay no taxes at the time of the merger. If the target shareholders earn a gain on the value of their shares, this gain is not taxed until the new shares are sold

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