Normally, the acquiring firm pays a price that is a premium above the market price of the acquired firm. This means that the ratio of exchange in market price is
A. always less than 1.
B. always greater than 1.
C. usually negative.
D. equal to 1.
Answer:B
Normally, the acquiring firm pays a price that is a premium above the market price of the acquired firm. This means that the ratio of exchange in market price is
A. always less than 1. B. always greater than 1. C. usually negative. D. equal to 1.