In a stock swap the acquiring firm issues shares of stock


Which statement is false?

a. in a stock swap, the acquiring firm issues shares of stock in order to pay for the acquistion.

b. a leveraged merger is between unrelated firms

c. a leveraged buyout involves creating a new company out of part of your company and then selling shares of the new company to the public.

d. in an asset purchase, the acquiring firm does not assume the liabilities of the target firm

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Financial Management: In a stock swap the acquiring firm issues shares of stock
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