16. On day 1, the market value per share of Vintage SAOG RO 1.200 and RO 2.450 for Bisleri SAOG. Vintage SAOG has 4000 shares and Bisleri SAOG has 9,000 shares. On day 3, the management of Bisleri SAOG, at a private meeting, decide to make a cash takeover bid for Vintage SAOG at a price of RO 1.850 per share. The takeover will produce large operating savings with a present value of RO 15,000. On day 6, Bisleri SAOG publicly announces an unconditional offer to purchase all the shares of Vintage SAOG at a price of RO 1.850 per share with settlement on day 18. Details of the large savings are not announced and are not public knowledge. On day 14, Bisleri SAOG announces details of the savings which will be derived from the takeover. Determine the day 3 day 6, day 14, and day 18 share prices of Vintage SAOG and Bisleri SAOG. (Ignore the time value of money for this period and assume that the only factors that influence the share price are the ones given above). Question: The value of equity share of Vintage SAOG share and Bisleri SAOG share on Day 6 (2 Points) None of the above Vintage SAOG RO 1.850 and Bisler SAOG RO 2.450 Vintage SAOG RO 1,200 and Bisleri SAOG RO 1.450 Vintage SAOG RO 1.850 and Bisleri SAOG RO 3.450 16. On day 1, the market value per share of Vintage SAOG RO 1.200 and RO 2.450 for Bisleri SAOG. Vintage SAOG has 4000 shares and Bisleri SAOG has 9,000 shares. On day 3, the management of Bisleri SAOG, at a private meeting, decide to make a cash takeover bid for Vintage SAOG at a price of RO 1.850 per share. The takeover will produce large operating savings with a present value of RO 15,000. On day 6, Bisleri SAOG publicly announces an unconditional offer to purchase all the shares of Vintage SAOG at a price of RO 1.850 per share with settlement on day 18. Details of the large savings are not announced and are not public knowledge. On day 14, Bisleri SAOG announces details of the savings which will be derived from the takeover. Determine the day 3 day 6, day 14, and day 18 share prices of Vintage SAOG and Bisleri SAOG. (Ignore the time value of money for this period and assume that the only factors that influence the share price are the ones given above). Question: The value of equity share of Vintage SAOG share and Bisleri SAOG share on Day 6 (2 Points) None of the above Vintage SAOG RO 1.850 and Bisler SAOG RO 2.450 Vintage SAOG RO 1,200 and Bisleri SAOG RO 1.450 Vintage SAOG RO 1.850 and Bisleri SAOG RO 3.450
