In Analyzing a Merger, the ____ Is the Number of the Acquiring

question 22

Multiple Choice

In analyzing a merger, the ____ is the number of the acquiring company shares received per share of acquired company stock owned.

• A) assignment
• B) composition
• C) price-purchase ratio
• D) exchange ratio

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Definitions:

Mortgage

A loan secured by real estate property, commonly used to purchase a home.

Prepaid Interest

Interest starts accruing (building) at the beginning of each month and continues throughout the month; prepaid interest at the closing is the amount of mortgage interest due to cover the time from the closing date to when the first mortgage payment is due.

Down Payment

The upfront money applied to a purchase that is made using a loan (credit).

Mortgage

A loan specifically used to purchase real estate, where the property itself serves as collateral until the loan is repaid.