Which of the following is true regarding the number of the acquirer's shares exchanged in a fixed exchange ratio structure?
A)It remains constant
B)It goes up
C)It fluctuates
D)It goes down

Question

Quizplus · Accepted Answer

In a fixed exchange ratio structure, the number of the acquirer's shares exchanged for each share of the target company remains constant. This fixed exchange ratio is determined at the time of the merger or acquisition and does not change during the transaction. Therefore, the answer is that it remains constant.

Which of the Following Is True Regarding the Number of the Acquirer's