1. Using the SEC filing for the ATT/TWX merger, we find that a certain level of cash consideration is guaranteed. Additionally, there is a range of equity consideration depending on the prevailing stock price of ATT. Assume that the stock price of ATT is $35 per share as of the effective date. What is the implied price offered for TWX based on an ATT price of $35? Report your answer to two decimals.

Regardless of the TWX offer price you calculated in the prior questions, now assume that the offer price is $110 (with 100% certainty). Also, the TWX price before the merger was announced was $93. If the market price of TWX sometime after the merger was $95, what is the probability the market is giving for the merger to be completed successfully? Answer in decimals rounded to two decimals.

3. Regardless of the TWX offer price you calculated in the prior questions, now assume that the offer price is $110 (with 100% certainty). Also, the TWX price before the merger was announced was $93. If the market price of TWX sometime after the merger was $105, what is the probability the market is giving for the merger to be completed successfully? Answer in decimals rounded to two decimals.

4.All else equal, the closer that the target firm's market price moves to the offer price, the higher the probability the market is giving the deal to be completed successfully.

Group of answer choices

True

False