In an M&A transaction, which of the following best explains why the premium paid is typically calculated on the basis of the target share price at multiple intervals prior to announcement?
A) To control for market gyrations and potential target share price creep
B) To attempt to determine the date the acquirer made its final decision to approach the target
C) To attempt to determine the date the acquirer finalized the value of its offer price to the target
D) It is the best method for determining the average of contemplated offer prices by the buyer
Answer: A