Question
If the acquiring firm pays a price premium above the market price of the acquired firm. What will be theratio of exchange in the market
If the acquiring firm pays a price premium above the market price of the acquired firm. What will be theratio of exchange in the market price?
A.equal to 1
B.0, because the ratio of exchange results in no increase or decrease of shares
C.less than 1
D.greater than 1
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International Finance Theory and Policy
Authors: Paul R. Krugman, Maurice Obstfeld, Marc J. Melitz
10th edition
978-0133425895, 133425894, 978-0133423631, 133423638, 978-0133423648
