Why transaction will qualify as a type b reorganization

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Reference no: EM133852823

Assignment:

Acquiring Corporation ("A") wishes to acquire Target Corporation ("T"). Prior to the proposed acquisition, A has 100,000 shares of voting common stock outstanding with a value of $100 per share.

Consider whether the following transaction will qualify as a Type B reorganization. Why or why not?

In exchange for all of their T stock, T shareholders receive 10,000 shares of newly issued A voting preferred stock with a value of $1,000 per share. Each share of the preferred stock has the same voting rights per share as each of A common stock.

Reference no: EM133852823

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