The excess of the amount offered in an acquisition over the prior stock price of the acquired firm is the:
A) bonus.
B) goodwill.
C) implied offering price.
D) takeover premium.

Question

Quizplus · Accepted Answer

The excess of the amount offered in an acquisition over the prior stock price of the acquired firm is known as the takeover premium. This premium is paid by the acquiring company to obtain control of the target company.

The Excess of the Amount Offered in an Acquisition Over