2. International corporate control

Suppose that an MNC is seeking to make an international acquisition. The current market value of the target is $500 million.

If the management and board of directors at the target require at least a 50.00% premium on the current value, the MNC will need to pay at least

$______ million to acquire the target. In response to this acquisition, the stock price of the the acquiring MNC will most likely

A) decrease

B) increase

in the short term.