Question 3 Austin Pharmaceutical Corporation (APC) is an all-equity financed company with an equity beta of 1.5. The company has just received a takeover offer of $200 million for 100% of its equity. The offer is open for a year, i.e., the management can accept or decline the offer anytime within the next 12 months. The CEO of APC predicts that the takeover offer will reduce the equity beta of the company in the coming months. Do you agree with him