Which of the following statements about the Purchase Premium in acquisition is INCORRECT?
a. Competition for the purchase of a target firm will increase the purchase premium.
b. Purchase premium can vary over time due to economic factors such as interest rates.
c. Purchase premium can vary over time because of sentiment in the stock market.
d. All things being equal, the buyer tends to pay a lower premium (i.e. receive a discount) when they use cash to pay for the target firm.