The ____ is the number of acquiring company shares received per share of acquiring company stock owned.
A) stock equity ratio
B) exchange ratio
C) dividend exchange ratio
D) interest parity ratio

Question

Quizplus · Accepted Answer

The exchange ratio is the number of acquiring company shares that will be received for each share of the target company owned. It is a critical factor in determining the value of the merger or acquisition for the target company's shareholders. A higher exchange ratio generally indicates a more favorable deal for the target company's shareholders.

The ____ Is the Number of Acquiring Company Shares Received