12.1 Flashcards
1
Q
Fixed exchange ratio
A
You know ownership but not value per share. You want to increase SP during NP - where is has the most influence. So u can give the same amount of money with less stocks
2
Q
Floating exchange ratio
A
Determine price at end transaction period. So have to increase SP before. Value per stock is decided but not the ownership.
3
Q
Passive media management
A
Increase SP due to good performance. Has to be persistent over time periods
4
Q
Opportunistic acquisition
A
Takeover when stock of target is favourable. Not causality= if stock is up. Then MC is up