A Public Offer by One Firm to Directly Buy the Shares

question 45

Multiple Choice

A public offer by one firm to directly buy the shares of another firm is called a:

• A)merger.
• B)consolidation.
• C)tender offer.
• D)spinoff.
• E)divestiture.

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Definitions:

Compounded Quarterly

This refers to the process of applying interest to an initial amount of money (principal) four times a year, at the end of each quarter.

Economically Equivalent

Refers to different financial transactions or investments that have the same economic effect or value, despite differing in structure or form.

Scheduled Payment

A pre-determined amount of money that is paid at regular intervals under the terms of a loan or lease agreement.

Compounded Semi-Annually

Interest on a loan or investment calculated twice a year, adding each interest payment to the principal.