Question $17($Mandatory$)(0\mathrm{.}3$ points$)$

What price must a company typically pay to buy another company? The price will:

$1)$ include some premium over the current market value of the target's equity.

$2)$ include some discount relative to the current market value of the target's equity.

$3)$ be the book value of the target's equity.

$4)$ be the market value of the target's equity.

Question $18($Mandatory$)(0\mathrm{.}3$ points$)$