Suppose a company announces that it has decided to fund an


a) Suppose a company announces that it has decided to fund an acquisition of company B with less cash than expected. What do you expect to happen to the company's stock price and long-term bond prices? Why?

b) Suppose the company announces that it has decided to fund the acquisition with more cash than expected. What do you expect to happen to the company's stock price and long-term bond prices? Why?

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Financial Management: Suppose a company announces that it has decided to fund an
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