[Gaming Merger] Calvin and Daniella Each Own 5% of GamePower

question 28

Multiple Choice

[Gaming Merger] Calvin and Daniella each own 5% of GamePower, a video game design company. GamePower is seeking to merge with GameKing, and before a shareholder meeting, Calvin and Daniella email all other shareholders and corporate representatives about their disagreement with the proposed transaction. At the shareholder meeting, they vote against the merger with GameKing, but, 90% of the shareholders vote in favor of the merger. Calvin tells Daniella that it is not fair that they are forced to be part of GameKing. Daniella tells him they have no choice, so get used to it.
-Assuming Calvin and Daniella properly exercise their appraisal rights, how is the value of their shares generally determined?

• A) By the value of the shares on the day following the shareholder vote.
• B) By the value of the shares on the day of the shareholder vote.
• C) By the value of the shares on the day before the shareholder vote.
• D) By the value of the shares on the day the merger is finalized.
• E) By the value of the shares of similarly sized corporations.

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Definitions:

HSG

Hysterosalpingography, a radiographic procedure to examine the uterus and fallopian tubes often used in infertility diagnosis.

COC

Combined Oral Contraceptives, a form of birth control pill that contains both estrogen and progestin hormones.

Sarc

A root word used in medical terms to indicate flesh or connective tissue.

Flesh

The soft substance consisting of muscle and fat between the skin and bones of an animal or a human.