15.14 What is the fully diluted offer price (equity value) for a tender offer made to acquire a target whose pretender shares are trading for $1.50 per share? The tender offer includes a 30% premium to the target’s pretender share price. The target has basic shares outstanding of 70 million and 5 million options, which may be converted into common shares at $1.60 per share. (Appendix)

Answer: $138.25 million