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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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