An Acquisition Premium Is the Amount by Which the Price

Multiple Choice

An acquisition premium is the amount by which the price offered for an existing business exceeds:

A) the fair market value of similar companies in the same geographic locale.
B) the preacquisition market value of the target company.
C) the comparable value of similar companies within the same market.
D) the amount paid as a down payment to be held in escrow until closing.
E) the difference between the amount that was offered and the amount that is escrowed.