Energetic Inc

question 45

Essay

Energetic Inc., believes that it can acquire Satisfied Industries and improve efficiency to the extent that the market value of Satisfied will increase by $5 million. Satisfied currently sells for $20 a share, and there are 1 million shares outstanding.
a. Satisfied's management is willing to accept a cash offer of $25 a share. Can the merger be accomplished on a friendly basis?
b. What will happen if Satisfied's management holds out for an offer of $28 a share?

---

Definitions:

Data Rot

The gradual degradation or loss of data quality or integrity over time due to various factors such as obsolescence or storage medium deterioration.

Data Degradation

Refers to the gradual loss of quality or fidelity of data over time or through the process of copying and transferring.

Inconsistency

The state of being in disagreement or lacking uniformity within data, actions, or behaviors.

Database Systems

Software applications designed to store, manage, and retrieve information efficiently from a structured set of data.