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Which two of these are required for an acquisition to be considered tax-free?I. The bidder must purchase the target firm for less than its current market value.II. The acquisition must have a business purpose other than the avoidance of taxes.III. The stockholders in the target firm must retain an equity interest in the bidder.IV. The acquisition must be a lump sum cash transaction.A) I and II onlyB) III and IV onlyC) II and III onlyD) I and III onlyE) II and IV only
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