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  • Exam Code: NSE5_FMG-7.0
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  • Exam Name: Fortinet NSE 5 - FortiManager 7.0
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Company U has made a bid for the entire share capital of Company B.
Company U is offering the shareholders in Company B the option of either a share exchange or a cash alternative.
Advise the shareholders in Company B which THREE of the following would be considered disadvantages of accepting the cash consideration?
A. Taxation is payable on realised capital gains.
B. Interest rates on deposit accounts are currently at a historic low and are expected to remain low.
C. There will be no opportunity to participate in the future economic success of Company U.
D. Company U is not expected to change its dividend policy post-acquisition.
E. Cash consideration is certain whereas Company U's future share price performance is uncertain.
Answer: A,B,C

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