When the Ratio of Exchange in a Merger Is Equal

question 47

Multiple Choice

When the ratio of exchange in a merger is equal to one and both the acquiring and the target companies have the same premerger earnings per share, both the acquiring and the target companies have the same

• A) P/E ratio.
• B) debt ratio.
• C) return on equity.
• D) book value per share.

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Definitions:

Corporate City

A city significantly influenced by or structured around the presence and interests of large corporations, often with implications for urban planning and governance.

Capital Accumulation

The growth of wealth or assets by a company or individual, often used to describe the increase in capital goods necessary to improve production.

Thomas Robert Malthus

An English cleric and scholar, known for his theories on population growth and its implications for society.

Population Control

Measures or policies implemented to control or regulate the growth rate of a population to ensure sustainability.