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Assuming no dilution after takeover. Current market price for a stock is $5 and it would increase to $40 after a takeover by corporate raider
Assuming no dilution after takeover. Current market price for a stock is $5 and it would increase to $40 after a takeover by corporate raider X (Assume $2 cost to raider X to launch takeover). Based on what we learned in class, at what price db you expect shareholders to tender their shares and raider to achieve a successful takeover? Any price above $5. $38. A takeover will not take place. Between $5 and $40
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