- CFA Exams
- CFA Level I Exam
- Topic 4. Corporate Issuers
- Learning Module 18. Mergers and Acquisitions
- Subject 8. Merger Bid Analysis
CFA Practice Question
The more confident both the target and acquirer are that synergies will be realized, the more:
II. The acquirer will prefer to pay with stock.
III. The target will prefer to receive cash payment.
IV. The target will prefer to receive stock payment.
I. The acquirer will prefer to pay cash.
II. The acquirer will prefer to pay with stock.
III. The target will prefer to receive cash payment.
IV. The target will prefer to receive stock payment.
Correct Answer: I and IV
User Contributed Comments 1
| User | Comment |
|---|---|
| quanttrader | acquirer will prefer cash to keep control, while target will prefer stock to share in the upside |