Which of the Following Statements Is False

question 24

Multiple Choice

Which of the following statements is false?

• A) Bidders almost always offer target firm shareholders a premium price for their stock.
• B) The average premium for completed U.S.mergers for the last 30 years has averaged about 20%.
• C) Premiums exist for mergers in many other countries in addition to the U.S.
• D) The merger premium is the difference between pre-merger market value and acquisition value.

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Definitions:

Compounded Monthly

Interest that is calculated and added to the account balance every month.

Periodic Interest Rate

The interest rate charged or paid over a specific period of time, often monthly, quarterly, or annually.

Conditional Sale Contracts

Agreements where the sale of goods or property is conditional upon certain terms, typically the buyer making payments over a period, with the title remaining with the seller until conditions are met.

Purchase Price

The amount of money paid to acquire a good, service, or asset.