The Merger Bid Premium Usually Is Defined as

question 97

Multiple Choice

The merger bid premium usually is defined as

• A)the difference between the price paid for the company and the market value immediately prior to the merger announcement.
• B)the ratio of the purchase price of a target bank's equity to its book value.
• C)the difference between the market value immediately prior to the merger announcement and the book value of the company.
• D)All of these.
• E)the difference between the price paid for the company and the market value immediately prior to the merger announcement, and the ratio of the purchase price of a target bank's equity to its book value.

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Definitions:

Elimination

A method used in algebra to solve systems of equations by removing variables to find their values.

Linear Equations

Equations between two variables that produce a straight line when graphed on a Cartesian coordinate system.

Method Of Elimination

A technique for solving systems of equations by adding or subtracting the equations to eliminate one of the variables.

Initial Investment

The starting amount of money put into an investment or project.