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Which of the following statements is most CORRECT?

a. Acquiring firms send a signal that their stock is undervalued if they choose to use stock to pay for the acquisition.

b. Managers often are fired in takeovers, but never in mergers.

c. If a company that produces military equipment merges with a company that manages a chain of motels, this is an example of a horizontal merger.

d. All of the above

e. None of the above

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