Which of the Following Statements Seems Most Correct About a Firm

Which of the following statements seems most correct about a firm that has made a cash tender offer for two million shares of ABC Corp.at a price of $20, which is $6 higher than ABC's current value?

A) The economic gain of the merger exceeds $40 million.
B) The economic gain of the merger exceeds $28 million.
C) The economic gain of the merger exceeds $12 million.
D) The economic gain of the merger would be zero after accounting for merger cost.

Correct Answer:

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