Ginormous Oil Entered into an Agreement to Purchase All of the Outstanding

question 6

Multiple Choice

Ginormous Oil entered into an agreement to purchase all of the outstanding shares of Slick Company for $60 per share.The number of outstanding shares at the time of the announcement was 82 million.The book value of liabilities on the balance sheet of Slick Co.was $1.46 billion.Immediately prior to the Ginormous Oil bid,the shares of Slick Co.traded at $33 per share.What value did Ginormous Oil place on the control of Slick Co.?

• A) $2.21 billion
• B) $2.71 billion
• C) $4.17 billion
• D) $6.38 billion
• E) None of the above.

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