An Acquiring Company Is Considering a Takeover of a Target

question 72

Multiple Choice

An acquiring company is considering a takeover of a target company.The acquiring company has 10 million shares outstanding with $40 per share.The target company has 5 million shares outstanding which sell for $20 per share.If the acquiring company estimates that merger gains will be $20 million, determine what the highest price will be paid per share for the target.

• A)$24
• B)$26
• C)$28
• D)$30

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Definitions:

Single-Subject Experimental Designs

Research designs that focus on the response of a single participant to document the effects of a variable.

Cross-Sectional

Describes research that collects data from a population or a representative subset at one specific point in time.

Dependent Variable

In an experiment or study, it is the variable being tested and measured, which is expected to be influenced by the independent variable.

Single-Subject Experimental Design

A research design focusing on the effects of an intervention on a single participant, allowing detailed observation of individual responses.