Rudy's, Inc

question 24

Multiple Choice

Rudy's, Inc. and Blackstone, Inc. are all-equity firms. Rudy's has 1,500 shares outstanding at a market price of $22 a share. Blackstone has 2,500 shares outstanding at a price of $38 a share. Blackstone is acquiring Rudy's for $36,000 in cash. What is the merger premium per share?

• A) $2.00 per share
• B) $4.25 per share
• C) $6.50 per share
• D) $8.00 per share
• E) $14.00 per share

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Definitions:

Primary Management Function

The basic responsibilities of managers within an organization which include planning, organizing, leading, and controlling.

Budgets Obsolete

The idea that traditional budgeting processes may no longer be effective or relevant in the current fast-paced and ever-changing business environment.

Program Evaluation

The systematic method for collecting, analyzing, and using information to answer questions about projects, policies, and programs, particularly about their effectiveness and efficiency.

Review Technique

A systematic method used for evaluating, assessing, or analyzing a process, system, or performance, often with the aim of identifying improvements or solutions.