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The Price Premium in a Merger Is the Difference Between

Question 53

Multiple Choice

The price premium in a merger is the difference between the price offered for the target company's stock and:


A) the target's book value before news of the acquisition got out.
B) the target's book value after news of the acquisition got out.
C) the target's market value before news of the acquisition got out.
D) the target's market value after news of the acquisition got out.

Correct Answer:

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