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

Question

Quizplus · Accepted Answer

The return on the investment can be calculated using the following formula:

Return on investment = ((Sale price - Purchase price) / Purchase price) x 100%

Plugging in the numbers, we get:

Return on investment = (($31 - $21) / $21) x 100%
Return on investment = 47.62%

Therefore, tendering the shares to Gorilla would result in a return of 47.62%, which is option B.

You Own Shares in Darling That Were Purchased at a Price