Multiple Choice
An acquiring company is considering a takeover of a target company.The acquiring company has 15 million shares outstanding with $30 per share.The target company has 8 million shares outstanding which sell for $24 per share.If the acquiring company estimates that merger gains will be $16 million, determine what the highest price will be paid per share for the target.
A) $24
B) $26
C) $28
D) $30
Correct Answer:
Verified
Correct Answer:
Verified
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