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An 'Acquisition Premium' Is

Question 3

Multiple Choice

An 'acquisition premium' is:


A) The increase in the stock price of the acquirer associated with the acquisition.
B) The pay-off to the directors of the acquired company in return for their cooperation with the acquiring firm.
C) The difference between stock prices of the acquirer and the acquired company.
D) The difference between the market price of the acquired firm before the acquisition and the price offered by the acquirer.

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