Salt Corporation Wants to Acquire or Merge with Pepper Corporation

question 66

Multiple Choice

Salt Corporation wants to acquire or merge with Pepper Corporation.Salt should

• A)file a plan of merger with the secretary of state.
• B)file an article of merger with Pepper.
• C)make a tender offer to the shareholders of Pepper.
• D)make a tender offer to the shareholders of Salt.

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Definitions:

Expected Growth Rate

The anticipated rate at which an investment, economy, or other financial entity will grow over a certain period.

Rate of Return

The outcome in terms of profit or loss on an investment over a designated period, presented as a percentage of the investment’s first cost.

Dividend

A part of a company’s profits given out to its shareholders, usually as cash or more shares.

ROE

Return on Equity; a measure of financial performance calculated by dividing net income by shareholder equity.