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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.