Kates Caf has 2 million shares outstanding at a price of $23 each. Hanks Heaters is preparing a tender offer of $25 per share. Kate estimates the NPV of the merger to be $8 million. What percentage of the merger gains will be captured by Hanks stockholders?

Select one:

a.

33.33%

b.

50.00%

c.

66.67%

d.

54.55%

e.

45.55%