In a merger, the acquiring firm can elther pay in cash or make a stock...

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In a merger, the acquiring firm can elther 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. Consider the following statement about the impact of the takeover bid structure: The structure of the takeover bid affects the capital structure of the post-merger firm. is this statement true or false? Folse 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 firm and the acquiring firm, review the diagram below and choose which statements are correct. 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 firm and the acquiring firm, review the diagram below and choose which statements are correct. Diagram: Merger Tax Effects A Check all that apply. The acquiring firm continues to depreciate acquired assets at the old rate. The acquiring firm adds acquired assets to its books at their book values. The target company shareholders will benefit from the synergistic gains created by the merger. Target shareholders recelve shares of stock in the acquiring firm and pay no taxes at the time of the merger

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