An acquisition premium is the amount by which the price offered for an existing business exceeds the

$(2\mathrm{.}5$pts$)$

Question $4-$ An acquisition premium is the amount by which the price offered for an existing business exceeds the

fair market value of similar companies in the same geographic locale

amount paid as a down payment to be held in escrow until closing.

comparable value of similar companies within the same market.

preacquisition market value of the target company

difference between the amount that was offered and the amount that is escrowed.