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

question 23

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.