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.

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