The actual ratio of exchange in a stock-exchange acquisition is the ratio of the
A. amount paid per share of the target company to the per share book value of the acquiring firm.
B. book value per share of the target company to the per share market price of the acquiring firm.
C. market value per share of the target company to the per share market price of the acquiring firm.
D. amount paid per share of the target company to the per share market price of the acquiring firm.
Answer:D
The actual ratio of exchange in a stock-exchange acquisition is the ratio of the
A. amount paid per share of the target company to the per share book value of the acquiring firm. B. book value per share of the target company to the per share market price of the acquiring firm. C. market value per share of the target company to the per share market price of the acquiring firm. D. amount paid per share of the target company to the per share market price of the acquiring firm.