Posted by: Pdfprep
Post Date: April 7, 2021
Company A is a large listed company, with a wide range of both institutional and private shareholders.
It is planning a takeover offer for Company B.
Company A has relatively low cash reserves and its gearing ratio of 40% is higher than most similar companies in its industry.
Which TWO of the following would be the most feasible ways of Company A structuring an offer for Company B?
A . Cash offer, funded by borrowings.
B . Share for share exchange.
C . Cash offer, funded from existing cash resources.
D . Cash offer, funded by a rights issue.
E . Debt for share exchange.
Answer: B,D
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