[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:

Abdominal Aorta

The continuation of the thoracic aorta that runs through the abdomen, supplying blood to the abdominal and pelvic organs and the legs.

Common Iliac Artery

A major artery in the pelvic region that splits into the internal and external iliac arteries, supplying blood to the pelvis and legs.

Bifurcation

The division of something into two branches or parts, such as the bifurcation of a blood vessel or a route.

Abdominal Aorta

The largest artery in the abdominal cavity that supplies oxygenated blood to much of the abdominal and pelvic organs and the legs.