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Discussion

Firm A is planning to acquire Firm B. If Firm A prefers to make a cash offer for the merger it indicates that:

  • A.Firm A's managers are optimistic about the post merger value of A
  • B.Firm A's managers are pessimistic about the post merger value of A
  • C.Firm A's managers are neutral about the post merger value of A
  • D.None of the above

Answer: A

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