Normally, the Acquiring Firm Pays a Price That Is a Premium

question 113

Multiple Choice

Normally, the acquiring firm pays a price that is a premium above the market price of the acquired firm. This means that the ratio of exchange in market price is

• A) always less than 1.
• B) always greater than 1.
• C) equal to 1.
• D) usually negative.

---

Definitions:

Extended Childcare

Childcare services that go beyond standard hours or provisions, accommodating the varying needs of working parents.

Pay Increases

Adjustments made to employees' salaries to reflect changes in living costs, performance, or market rates.

On-site Restaurants

Eateries located within an establishment, such as a business center or corporate office building, providing convenient dining options for employees and visitors.

Medical Benefits

Health-related benefits provided by employers or government programs, which may include medical insurance, dental care, vision care, and prescription drug coverage among others.