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

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Definitions:

Inconsistent Parenting

A parenting style characterized by a lack of predictable rules, expectations, or responses, which can lead to confusion and insecurity in children.

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Drug used to treat manic and depressive symptoms.