Firm B's 1 Million Shares of Stock Currently Sell for $12

question 93

Multiple Choice

Firm B's 1 million shares of stock currently sell for $12 each,but firm A is preparing an $18 per share tender offer.Firm A estimates the gain of the merger to be $6 million.What percentage of the merger gains will be captured by firm B's stockholders?

• A) 33.33%
• B) 50.00%
• C) 66.67%
• D) 75.00%

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Definitions:

Tort Liability

Legal responsibility arising from a civil wrong not based on a contractual obligation, leading to compensation for damages or injuries.

Assignment

is the transfer of rights, property, or obligations from one party to another under a contract.

Transfers

The act of moving or passing assets, property, titles, or rights from one person to another.

Remaining Rights

Remaining rights refer to those rights retained by a party after some rights have been waived or transferred to another party.