Which of the Following Statements Is Correct Concerning the Cost

Which of the following statements is correct concerning the cost of two firms merging? The cost:

A) Is fixed when the merger is financed with cash
B) Can be affected by post-merger gains if cash is used
C) Decreases as the post-merger share price increases when stock is used to finance the merger
D) Is not determined until after the merger, regardless of the type of financing

Correct Answer:

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