Enter the equity purchase price ($) and the current share price ($) into the Exchange Ratio Calculator. The calculator will evaluate and display the Exchange Ratio.
Exchange Ratio Formula
The following formula is used to calculate the Exchange Ratio.
EXR = EP / SP
- Where EXR is the Exchange Ratio ( )
- EP is the equity purchase price ($)
- SP is the current share price ($)
How to Calculate Exchange Ratio?
The following example problems outline how to calculate Exchange Ratio.
Example Problem #1:
- First, determine the equity purchase price ($).
- The equity purchase price ($) is given as: 56.
- Next, determine the current share price ($).
- The current share price ($) is provided as: 70.
- Finally, calculate the Exchange Ratio using the equation above:
EXR = EP / SP
The values given above are inserted into the equation below and the solution is calculated:
EXR = 56 / 70 = .80
Example Problem #2:
For this problem, the variables required are provided below:
equity purchase price ($) = 70
current share price ($) = 90
Test your knowledge using the equation and check your answer with the calculator above.
EXR = EP / SP = ?
