The amount received by the target firm's shareholders in excess of the value of their stock during a merger or acquisition is called ________.
A) a premium
B) excess capital
C) a bonus
D) increased principal

Question

Quizplus · Accepted Answer

The excess amount paid to the target firm's shareholders over the value of their stock is called a premium. This is a common occurrence during mergers or acquisitions, and it is often used to entice shareholders to agree to the deal.

The Amount Received by the Target Firm's Shareholders in Excess