Difference between revisions of "Discount"
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Latest revision as of 22:06, 15 July 2020
Discount is if an acquiring firm pays less for another firm than the firm's stock price times its # of shares of stock outstanding (book value or market value), then that # less the actual purchase price is called a discount.
Definition
According to the Strategic Management by David and David (15th edition),
- Discount. If an acquiring firm pays less for another firm than the firm's stock price times its # of shares of stock outstanding (book value or market value), then that # less the actual purchase price is called a discount.
