An Acquiring Company Is Considering a Takeover of a Target

question 6

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

---

Definitions:

Thought Disorders

Conditions characterized by disturbances in the organization, process, or content of thinking.

Neurodevelopmental Hypothesis

A theory that suggests disorders like schizophrenia are primarily the result of abnormal brain development early in life, possibly before birth.

Ultimate Cause

In biology, the deeper reason or evolutionary explanation for the existence of a trait, behavior, or structure of an organism.

Antipsychotics

A class of medication primarily used to manage psychosis, including delusions, hallucinations, schizophrenia, and bipolar disorder, among other mental health conditions.