- Whether it makes sense for your company management to favor the lower offer of take over and form of payment that affects your answer. Merger: Merger occurs when the shareholders of two or more companies pool the resources of their company into one separate legal entity and as a result a new company comes into existence. Merger is basically the result of merge of two or more companies into one. Cash vs. Stock Payment Method: Cash versus stock payment method is one of the methods of payment where the acquiring firm has to decide when do the acquiring firm have to pay with cash or when do the acquiring firm have to pay with stock to the target company.

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Chapter 29, Problem 9CQ

Summary Introduction

To explain:-Whether it makes sense for your company management to favor the lower offer of take over and form of payment that affects your answer.

Merger:

Merger occurs when the shareholders of two or more companies pool the resources of their company into one separate legal entity and as a result a new company comes into existence. Merger is basically the result of merge of two or more companies into one.

Cash vs. Stock Payment Method:

Cash versus stock payment method is one of the methods of payment where the acquiring firm has to decide when do the acquiring firm have to pay with cash or when do the acquiring firm have to pay with stock to the target company.

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