If Gillette's total market value on the day the deal was announced was $48.30 billion, P&G's $57 billion offer would represent a(n)
A) 18% acquisition premium.
B) 82% acquisition discount.
C) 82% acquisition premium.
D) 18% acquisition discount.

Question

Quizplus · Accepted Answer

An acquisition premium is calculated as the percentage difference between the offer price and the market value. The premium is calculated as ($57 billion - $48.30 billion) / $48.30 billion = 18%.

If Gillette's Total Market Value on the Day the Deal