Down River Markets has decided to acquire a controlling interest in Blue Jays by purchasing shares of stock in the public markets

Which of the following statements correctly apply to a merger? I. The titles to individual assets of the acquired firm must be transferred into the acquiring firm's name. II. The merged firm will retain the use of the acquiring company's name. III. The acquiring firm does not have to seek approval for the merger from its shareholders. IV. The shareholders of the acquired company must approve the merger.    A.  I and III only B.  II and IV only C.  I, II, and III only D.  I, II, and IV only E.  I, II, III, and IV Refer to section 26.1

19.

In a merger the:    A.  legal status of both the acquiring firm and the target firm is terminated. B.  acquiring firm retains its pre-merger legal status. C.  acquiring firm acquires the assets, but not the liabilities, of the target firm. D.  shareholders of the target firm have little, if any, say as to whether or not the merger occurs. E.  target firm continues to exist but will be a wholly owned subsidiary of the acquiring firm. Refer to section 26.1

20.

Which of the following increase the costs associated with a merger?    A.  changing the title to all the combined firm's assets B.  disbanding the operations of the target firm C.  hiring an underwriter to distribute the IPO shares D.  issue costs associated with warrants that must be offered to the shareholders of the acquiring firm E.  seeking approval of the shareholders of both the acquiring and the acquired firm Refer to section 26.1

21.

Down River Markets has decided to acquire a controlling interest in Blue Jays by purchasing shares of stock in the public markets. Which of the following statements correctly apply to this acquisition? I. The purchase of publicly-traded shares may be more expensive than an outright merger with Blue Jays would have been. II. Down River Markets can avoid dealing with the board of directors of Blue Jays by purchasing shares in this manner. III. If Down River Markets is successful in acquiring at least 80 percent of the outstanding shares of Blue Jays, the remaining shareholders in Blue Jays will be forced to also sell their shares to Down River Markets. IV. Whether or not Down River Markets gains control of Blue Jays depends upon the willingness of Blue Jays shareholders to sell their shares.    A.  I and III only B.  II and IV only C.  I, II, and IV only D.  I, II, and III only E.  I, II, III, and IV Refer to section 26.1