1.

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» B. Firm A's managers are pessimistic about the post merger value of A


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