The Merger Bid Premium Usually Is Defined as

question 100

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 the above.
• E)Answers A and B only.

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Definitions:

Pooled Variance Estimate

An estimate of variance that combines the variances from two or more samples, assuming that the variances from the different populations are the same.

Population Variances

refer to the measure of the dispersion of data points in a population.

Variance

A measure of the dispersion or spread of a set of data points, quantifying the distance of each point from the mean.

Sampling Distribution

describes the distribution of a statistic over many samples drawn from the same population.