Open AccessThe Financial Analysis of Public Company in Stock Exchange Mergers Ratio
Author(s) -
Ping Gong
Publication year - 2020
Publication title -
journal of physics. conference series
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.21
H-Index - 85
eISSN - 1742-6596
pISSN - 1742-6588
DOI - 10.1088/1742-6596/1549/5/052123
Subject(s) - stock exchange , business , market maker , restricted stock , monetary economics , stock (firearms) , dividend , finance , financial economics , capital asset pricing model , equity (law) , economics , financial system , stock market , horse , mechanical engineering , paleontology , engineering , biology , political science , law
The stock exchange mergers of public companies are the result of the modern market competition. Due to the advantages of the stock exchange mergers such as they are not limited by the scale of mergers, are able to prevent cash flow pressure, enjoy the policy of preferential tax and retain the owners’ equity, they are applied by more and more public companies. Based on CAPM (Capital Asset Price Model), the paper designs a model of the common stock in the capital market which integrates stock dividends into the process of bonus sharing. The stock exchange ratio of both companies who are going to merger is calculated by the equilibrium price through this model. It provides the preliminary reference for the operation of stock exchange mergers.