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A Firm Has 90,000 Shareholders, Each of Whom Own $20

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Essay

A firm has 90,000 shareholders, each of whom own $20 in shares. A raider owns 10,000
shares (for a firm total of 100,000 shares.)In order to try to avoid a hostile takeover,
management has offered to repurchase the raider's shares for $30 a share. How will
this affect the value of the remaining shares?


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