Tetra is planning to acquire Alpha. If Tetra prefers to make cash offer for the merger it indicates that: *

a. Tetras managers are optimistic about the post-merger value of Tetra

b. Tetras managers are pessimistic about the post-merger value of Tetra

c. Tetras managers are neutral about the post-merger value of Tetra

d. Alphas managers are optimistic about post-merger value of Tetra

e. None of the above

You are a warrant holder at Green Co. You can purchase 1 share of stock per warrant at a price of $42. The current market price is $36 per share. Assume that after 1 year, the stock price would increase to reach $51 per share. Which of the following statements is correct? *

a. You would exercise your warrant; thus, you would get an exercise value of $9

b. You would exercise your warrant; thus, you would get an exercise value of $15

c. You would not exercise your warrant; thus, you would get an exercise value of $0

d. You would not exercise your warrant; thus, you would get an exercise value of ($6)

e. None of the above