Question
Kates Cafe has 2 million shares outstanding at a price of $23 each. Hanks Heaters is preparing a tender offer of $25 per share. Kate
Kates Cafe 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?
33.33%
50.00%
66.67%
54.55%
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International Financial Reporting Standards An Introduction
Authors: Belverd Needles, Marian Powers
2nd edition
053847680X, 978-1111793234, 1111793239, 978-0538476805
