Question
Company A makes an offer to the shareholders of Company B to buy 2 million shares at $38 each. The current stand alone value of
Company A makes an offer to the shareholders of Company B to buy 2 million shares at $38 each. The current stand alone value of Company B is $68.75 million. What is the cost to Company A (premium) Answer in millions?
- $7.25
- $3.25
- $5.25
- $1.25
- Zero
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Fundamentals Of Financial Management
Authors: James Van Horne, John Wachowicz
13th Revised Edition
978-0273713630, 273713639
