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Assume That Company a Makes a $40-Per-Share Offer for Company

Question 10

Multiple Choice

Assume that Company A makes a $40-per-share offer for Company B, which now trades at $30 per share. Also assume that the deal is expected to close in 90 days. If the deal closes, then the risk arbitrager's return would be:


A) 20%
B) 30%
C) 35%
D) 50%

Correct Answer:

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