Which of the Following Refers to the Situation in Which

question 31

Multiple Choice

Which of the following refers to the situation in which a company enters the market to purchase its own shares?

• A)Share buy- back
• B)Share dividend
• C)Share buy- up
• D)Share buyout

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Definitions:

Target Firm

A target firm is a company that is identified as a potential acquisition candidate by another company or investor.

Merger NPV

The net present value of combining two or more companies, taking into account the projected cash flows and synergies resulting from the merger.

Stock Exchange Bid

An offer made by an investor, trader, or dealer to buy a security that specifies the price and the quantity the buyer is willing to purchase.

Corporate Takeover

An event where one company purchases or acquires control over another company, either through a mutual agreement or a hostile bid.