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begin{tabular}{|l|l|} hline Question 5 & begin{tabular}{l} A portfolio manager decides to buy 100,000 shares at 9:00 a.m. when the price is $30.00. He sets

image text in transcribed \begin{tabular}{|l|l|} \hline Question 5 & \begin{tabular}{l} A portfolio manager decides to buy 100,000 shares at 9:00 a.m. when the price is \\ $30.00. He sets a limit price of $30.50 for the order. The buy-side trader does not \\ release the order to the market for execution until 10:30 a.m. when the price is $30.10. \\ The fund is charged a commission of 0.02/share and no other fees. At the end of the \\ day, 90,000 shares are executed and RLK closes at $30.85. What is the delay cost? \\ A. 9,000 \\ B. 17,000 \\ C. 26,000 \end{tabular} \\ \hline Your choice & \\ \hline \end{tabular} \begin{tabular}{|l|lcc|} \hline Question 6 & \multicolumn{1}{c}{ Acquirer } & \multicolumn{1}{c}{ Target } \\ \cline { 2 - 3 } & Market Value of Equity & 12,000,000 & 3,600,000 \\ & Total Number of Shares & 200,000 & 100,000 \\ & Stock Price & $60/ share & $36/ share \\ \cline { 2 - 4 } & If the synergy effect is expected to be $3 million, what is the post-merger stock price for \\ & the 1-to-1 stock offer? & \\ \hline \multirow{3}{*}{ Explanation } & & \\ & & & \\ & & \end{tabular}

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