Taggart Transcontinental and Phoenix-Durango Have Entered into a Stock Swap

question 45

Multiple Choice

Taggart Transcontinental and Phoenix-Durango have entered into a stock swap merger agreement whereby Taggart will pay a 30% premium over Phoenix-Durango's premerger price.If Taggart's premerger price per share was $15 and Phoenix-Durango's was $30,then the exchange ratio that Taggart will offer is closest to:

• A)0.4:1.
• B)1.8:1.
• C)2.0:1.
• D)2.6:1.

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Definitions:

Elite Pluralism

A theory of governance that suggests that despite the outward appearance of democracy, power actually rests in the hands of a small number of elite individuals and groups.

Economic Elites

A small, privileged group of people with a disproportionate amount of wealth, resources, and influence over economic policies and decisions.

Mass-Based Forces

Groups or movements that derive their strength and support from a large segment of the population, rather than from elite or specialized sections.

Public-Sector Interest Group

An organization that advocates for the interests of individuals and groups within the public sector, seeking to influence government policies and decisions.