In an M&A transaction, how does the use of a meaningful portion of stock versus all cash generally impact the premium paid for the target company?

In an M&A transaction, how does the use of a meaningful portion of stock versus all cash generally impact the premium paid for the target company? 






A) It results in a higher premium
B) It results in a lower premium
C) It does not impact the premium
D) It results in a higher premium roughly half the time, and a lower premium roughly half the time







Answer: B