T O P I C :  A s s e t   V a l u a t i o n   M o d e l s   f o r   M e r g e r s   a n d   A c q u i s i t i o n s  W h a t   i s   t h e   r a t i o   o f   e x c h a n g e ? I s   i t   b a s e d   o n   t h e   c u r r e n t   m a r k e t   p r i c e s   o f   t h e   s h a r e s   o f   t h e   a c q u i r i n g   a n d   t a r g e t   f i r m s ?

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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T O P I C :  A s s e t   V a l u a t i o n   M o d e l s   f o r   M e r g e r s   a n d   A c q u i s i t i o n s 

  1. W h a t   i s   t h e   r a t i o   o f   e x c h a n g e ?
  2. I s   i t   b a s e d   o n   t h e   c u r r e n t   m a r k e t   p r i c e s   o f   t h e   s h a r e s   o f   t h e   a c q u i r i n g   a n d   t a r g e t   f i r m s ?
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