The Price Paid for a Target Is Equal to the Target's

question 50

Multiple Choice

The price paid for a target is equal to the target's ________ plus the ________ paid in the acquisition.

• A) after-bid market capitalization; premium
• B) pre-bid market capitalization; administrative cost
• C) pre-bid market capitalization; premium
• D) pre-bid market capitalization; opportunity cost

---

Definitions:

Eps Growth Rate

The rate at which a company's Earnings Per Share (EPS) grows over a period.

Rate Of Return

Value augmentation or diminishment on an investment over a measured period, spotlighted as a percentage of the investment's embryonic cost.

Npvgo

Net Present Value of Growth Opportunities; an approach used to evaluate the value of investment projects or strategies based on their future growth possibilities.

Rate Of Return

A measure of the profitability or potential profitability of an investment, expressed as a percentage of the original investment.