Exchange Ratio Calculator

Formula

The formula to calculate the Exchange Ratio is:

\[ EXR = \frac{EP}{SP} \]

Where:

$ EXR $ is the Exchange Ratio
$ EP $ is the Equity Purchase Price ($)
$ SP $ is the Current Share Price ($)

What is Exchange Ratio?

The exchange ratio is the ratio of the equity purchase price to the current share price. It is used to determine the number of shares that will be exchanged in a merger or acquisition.

Example Calculation

Let's assume the following values:

Equity Purchase Price (EP): $100
Current Share Price (SP): $25

Using the formula to calculate the exchange ratio:

\[ EXR = \frac{100}{25} = 4 \]

The exchange ratio is 4.