Swap ratio

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In finance, a swap ratio is an exchange rate of the shares of the companies that would undergo a merger. This is calculated by the valuation of various assets and liabilities of the merging companies.[1]

The swap ratio determines the control that each group of shareholders of the companies shall have over the combined firm. It is an indicator of relative values of financial and strategic results of the company.

See also

References

  1. ↑ http://special-loans.com/dictionary.asp?t=swap_ratio


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