Which of the Following Statements Seems Most Correct About a Firm

question 3

Multiple Choice

Which of the following statements seems most correct about a firm that has made a cash tender offer for two million shares of ABC Corp.at a price of $20, which is $6 higher than ABC's current value?

• A)The economic gain of the merger exceeds $40 million.
• B)The economic gain of the merger exceeds $28 million.
• C)The economic gain of the merger exceeds $12 million.
• D)The economic gain of the merger would be zero after accounting for merger cost.

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Definitions:

Informed Consent

A process by which a person voluntarily confirms their willingness to participate in a particular activity, after having been informed of all the risks, benefits, and alternatives.

Ethical Decision-Making Model

A structured approach to solving ethical dilemmas, involving the identification of ethical issues, consideration of alternatives, and selection of the most ethical action.

Beneficence

Always striving to do what is good and acting in the best interest of your client.

Best Interests

A principle used to guide decisions made on behalf of others, ensuring that the outcomes serve the individual's overall welfare and benefits.