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

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Definitions:

Operating Activities

Activities related to the primary operations of a business, such as sales, supply chain management, and customer service.

Indirect Method

A method used in cash flow statement preparation that adjusts net income for changes in balance sheet accounts to convert it from accrual to cash basis.

Net Income

The total profit of a company after subtracting all expenses, taxes, and costs from total revenue.

Statement Of Cash Flows

A financial statement that highlights the major activities that impact cash flows and, hence, affect the overall cash balance.