Which of the following is least important to repurchase decisions of large American corporations?
A) The previous level of dividends.
B) The tax consequences to shareholders.
C) Lack of good investment opportunities for cash retained in the firm.
D) The company is holding more cash than it would like.
Answer: B
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What will be an ideal response?
Which one of the following is incorrect?
a. In an asset acquisition, the books of the acquired company are closed out, and its assets and liabilities are transferred to the books of the acquirer b. In many cases, stock acquisitions entail lower total cost than asset acquisitions c. regulations pertaining to one of the firms do not automatically extend to the entire merged entity in a stock acquisition d. A stock acquisition occurs when one corporation pays cash, issues stock, or issues debt for all or part of the voting stock of another company; and the acquired company dissolves and ceases to exist as a separate legal entity