Corporate Finance (The Mcgraw-hill/Irwin Series in Finance, Insurance, and Real Estate)
Corporate Finance (The Mcgraw-hill/Irwin Series in Finance, Insurance, and Real Estate)
11th Edition
ISBN: 9780077861759
Author: Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor
Publisher: McGraw-Hill Education
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Chapter 29, Problem 4MC
Summary Introduction

To calculate: The exchange ratio.

Merger:

Merger is the combination of two entities into one in which shareholders of both the companies merge their resources into new company. Merger is basically the result of combining two or more companies into one.

Exchange Ratio:

Exchange ratio is a ratio that is used to find out the number of shares issued of the merged company to the shareholders of targeted company in exchange of their share in the target company.

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