Whether cash is the predominant form of payment will depend on a variety of factors. These include the acquirer's current leverage, potential near-term earnings per share dilution of issuing new shares, the seller's preference for cash or acquirer stock, and the extent to which the acquirer wishes to maintain control over the combined firms.

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The statement provides valid factors that can influence whether cash is the predominant form of payment in a merger or acquisition.

Whether Cash Is the Predominant Form of Payment Will Depend