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CIMAPRA19-F03-1 Exam - Topic 5 Question 48 Discussion

Posted by Lisha on May 09, 2022 at 01:08 AM

CompanyA is located in Country A, where the currency is the A$.

It is listed on the local stock market which was set up 10 years ago.

It plans a takeover of Company B, which is located in CountryB where the currency is the B$, and where the stock market has been operating for over 100 years.

CompanyA is considering how to finance the acquisition, and how the shareholders of CompanyB might respond to a share exchange or cash (paid in B$).

Which of the followingislikely to explain why the shareholders ofCompanyB wouldprefera share exchange as opposed to a cash offer?

Suggested Answer: D

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9 comments · newest first
JE
Jessenia 1 year ago
Surprised they’d prefer shares! Isn’t cash more straightforward?
KR
Kristine 1 year ago
Capital gains sound nice, but what about volatility?
NA
Natalie 1 year ago
Really? I thought cash was always better.
VI
Vivienne 1 year ago
Definitely prefer shares over cash in this case.
JA
Janessa 1 year ago
Share exchange helps avoid currency risk!
HA
Haydee 1 year ago
This looks like a straightforward question on security standards and implementation specifications. I'll review the options carefully and try to recall the key elements of the standard.
EL
Elke 1 year ago
Okay, I've got this. When creating a decision operation, you can select a ruleflow, which is the correct answer. The other options don't seem relevant to that specific task.
CA
Camellia 1 year ago
Hmm, I'm not sure about this one. I'll need to think it through carefully. Maybe I should eliminate the options that don't seem to fit the description.
PE
Pearline 1 year ago
I'm pretty confident about this one. Using map fragments is definitely the way to go for adding Google Maps to an Android app.
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