Firm B's 1 Million Shares of Stock Currently Sell for $20

question 62

Multiple Choice

Firm B's 1 million shares of stock currently sell for $20 each. Firm A estimates the economic gain from the merger to be $10 million and is prepared to offer $22 cash for each share of B. What percentage of the merger gain will be captured by firm B's shareholders?

• A) 20.00%
• B) 33.33%
• C) 50.00%
• D) 60.00%

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Definitions:

Social Desirability Bias

The tendency of respondents to answer questions in a manner that will be viewed favorably by others, often leading to inaccuracies in data collection.

Self-Reported Scores

Scores or data that individuals provide based on their own assessment or perception, often used in surveys or questionnaires.

Influence Dimension

The capacity or power to affect someone's beliefs, attitudes, or actions through direct or indirect means, seen as a critical aspect of leadership.

Ethical Burden

Ethical burden concerns the challenging moral responsibilities and ethical choices faced by individuals, especially in positions of power or influence.