Which of the following statements are correct?
I. Going-concern value of a firm is equal to the
present value of expected future cash flows to owners and creditors.
II. When an acquiring firm purchases a target firm’s equity, the acquirer need not assume the target’s liabilities.
III. The market value of a public company reflects the worth of the business to minority investors.
IV. The fair market value of a business is usually the lower of its liquidation value and its going-concern value.
I and III only
II and IV only
II and III only
I, II, and III only
II, III, and IV only
None of the options are correct.