The Price Premium in a Merger Is the Difference Between

question 175

Multiple Choice

The price premium in a merger is the difference between the price offered for the target company's stock and:

• A)the target's book value before news of the acquisition got out.
• B)the target's book value after news of the acquisition got out.
• C)the target's market value before news of the acquisition got out.
• D)the target's market value after news of the acquisition got out.

---

Definitions:

Retaliate

To respond to an action or injury with a similar action, typically for revenge or defense.

Hominins

Members of the human lineage after the split from our common ancestor with chimpanzees, including all species of Homo and related genera.

New World Monkeys

A group of primates that live in the forests of Central and South America, distinct from their Old World counterparts in Africa and Asia.

Old World Monkeys

A group of primates native to Africa and Asia, part of the family Cercopithecidae, often characterized by their non-prehensile tails.