……. is the ratio in which an acquiring company will offer its own shares in exchange for the target company’s share during merger .

Related MCQs

• National Ltd. Has 12,000 equity shares of Rs.100 each. Sale price is equity share Rs.115 per share; flotation cost Rs.5 per share. Expected dividend growth rate is 5% and expected dividend at the end of the financial year is Rs.11 per share, What is the cost of equity shares of National Ltd?
• TCs Ltd. acquires HCL Ltd., MPS of HCL Ltd. Is Rs.20 and EPS is Rs. 5 for an exchange ratio of 1.5: 1, what was the PE ratio used in acquiring HCL Ltd.?
• Black & White Ltd. Has a cost of equity of 11% and a pre-tax cost of debt of 8.5%. The firm's target Weighted average cost of capital is 9% and its tax rate is 35%. What is the firm's target debt-equity ratio?
• …….. isa type of takeover in which the acquiring company turns itself into a subsidiary of the purchased company.
• This strategy enables the existing shareholders of the target company to buy additional shares at a high discount rate.
• …… increases the number of shares without actually increasing the paid - up value of the share capital.
• ….principle says that issue of debt and preference shares do not affect the interest of equity share holders.
• Financing methods for merger and acquisition exclude:
• ……… is not a financing method for merger and acquisition.
• The positive incremental net gain associated with two firms enter into a merger is called ……