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An acquiring company is considering a takeover of a target company. The acquiring company has 10 million shares outstanding with $40 per share. The
An acquiring company is considering a takeover of a target company. The acquiring company has 10 million shares outstanding with $40 per share. The target company has 5 million shares outstanding which sell for $20 per share. If the acquiring company estimates that merger gains will be $20 million, determine what the highest price will be paid per share for the target. A) $28 B) $24 C) $26 D) $30
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