The share exchange ratio is defined as
A) Offer price for the target divided by the acquirer's share price
B) Offer price for the target divided by the target's share price
C) Acquirer's share price divided by the target's share price
D) Target's share price divided by the offer price
E) Acquirer's share price divided by the offer price

Question

Quizplus · Accepted Answer

The share exchange ratio is defined as the offer price for the target company divided by the acquirer's share price. This ratio determines how many shares of the acquirer's stock are needed to purchase each share of the target company.

The Share Exchange Ratio Is Defined as