You Own Shares in Yahoo That Were Purchased at a Price

question 39

Multiple Choice

You own shares in Yahoo that were purchased at a price of $21 per share.Microsoft has offered to purchase Yahoo and buy your shares at a price of $31 per share.What will be your return if you tender your shares to Microsoft and the deal is completed?

• A)47.62%
• B)33.45%
• C)49.65%
• D)43.34%

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Definitions:

Level of Significance

Refers to the probability threshold below which the null hypothesis is rejected, indicating the degree of evidence required to conclude that an effect is statistically significant.

Type I Error

The mistaken disapproval of a valid null hypothesis, commonly referred to as a "false positive."

Null Hypothesis

A statement in hypothesis testing that assumes no significant difference or effect, serving as a default position until evidence indicates otherwise.

Incorrect Decision

A decision that does not result in the optimal or expected outcome, often due to faulty reasoning or misinformation.