The ratio of exchange in market price indicates the market price per share of an acquiring firm paid for each dollar of market price per share of the target firm.

Question

Quizplus · Accepted Answer

The statement is true. The ratio of exchange in market price is a key component of calculating the exchange ratio in a merger or acquisition. It reflects the amount of market value that the acquiring firm is willing to pay for each dollar of market value in the target firm's shares.

The Ratio of Exchange in Market Price Indicates the Market