. is the ratio in which an acquiring company will offer its own shares – McqOptions

MCQOPTIONS

1.	. is the ratio in which an acquiring company will offer its own shares in exchange for the target company s share during merger .
A.	Swap ratio
B.	Price- earnings ratio
C.	Exchange ratio
D.	Enterprise value to sales ratio
Answer» B. Price- earnings ratio

Discussion

No Comment Found

Related MCQs

According to . principle the ideal pattern of capital structure is one that tends to minimize the cost of financing.
.principle says that issue of debt and preference shares do not affect the interest of equity share holders.
Operating lease is favoured by the lessee in respect of assets which depreciate in value on account of ..
A firm that acquires another firm as part of its strategy to sell off assets, cut costs, and operate the remaining assets more efficiently is engaging in __________.
The lessee can protect himself against obsolescence by entering into a capital lease agreement with the lessor.
..is a long term lease and the lessee will be paying much more than the cost of the property or equipment to the lessor in the form of lease charges.
is the combination of two or more organisation in a related industry but do not offer same product.
is the process under which an existing large company purchases the business of another small company doing similar business.
The acquisition of a firm in the same industry, but at a different stage of the production process is called
.. isa type of takeover in which the acquiring company turns itself into a subsidiary of the purchased company.