Examlex
Which of the following assumptions is embodied in the AFN equation?
Merger Premium
The excess amount that an acquiring company pays over the market value of the shares of the company it is buying.
Cash Acquisition
The purchase of a target company using cash as the form of payment rather than stocks or other methods of payment.
After-Merger Earnings
The net income of a company following the completion of a merger, reflecting the financial performance after the consolidation of assets and operations.
Shares Outstanding
Shares outstanding refer to the total number of shares of stock that are currently owned by investors, including both public and institutional ownership.
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