The Per Share Value of a Target in a Merger

question 35

Multiple Choice

The per share value of a target in a merger or acquisition is determined by:

• A)dividing the equity value of the target by the number of shares outstanding.
• B)dividing the total value of the target by the number of shares that the target is authorized to issue.
• C)multiplying the number of shares outstanding by the market price of the shares.
• D)adding the equity value of the firm and the market price of its shares and dividing by the number of shares outstanding.

Grasp the historical perspectives on organizational theory and their implications on modern organizational design.

Understand the functional differences between the left and right hemispheres of the brain.

Recognize the impact of damage to specific brain regions on behavior and cognitive functions.

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Definitions:

Equity Profit

The portion of net income attributable to the equity holders of a company, representing their share of the earnings.

Share Capital

The total amount of funds raised by a company through the issuance of shares to investors, representing ownership in the company.

Shareholders' Equity

It represents the net assets of a company, calculated as total assets minus total liabilities, and is the ownership interest of the shareholders.

Goodwill Element

The portion of the purchase price in a business combination that exceeds the fair value of the net identifiable assets of the acquired entity, representing intangible assets like brand reputation or customer relationships.