Stock Vs Cash Considerations

This problem practices the strategic tradeoffs behind merger consideration and how those choices affect both the buyer and the seller. Candidates need to think through why a company might preserve cash, avoid additional borrowing, and use its own equity as currency, as well as why a seller might prefer shares because of future upside or possible tax advantages. Interviewers ask this because payment method is a core M&A decision that affects financing, balance sheet impact, and deal appeal to both sides.