Firm B's one million shares of stock currently sell for $20 each.Firm A estimates the economic gain from the merger to be $10 million and is prepared to offer $22 cash for each share of B What% of the merger gain will be captured by firm B's shareholders?
A)20.00%
B)33.33%
C)50.00%
D)60.00% Economic gain = $10 million

Question

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The Answer of Firm B's one million shares of stock currently sell for $20 each.Firm A estimates the economic gain from the merger to be $10 million and is prepared to offer $22 cash for each share of B What% of the merger gain will be captured by firm B's shareholders?
A)20.00%
B)33.33%
C)50.00%
D)60.00% Economic gain = $10 million

Firm B's One Million Shares of Stock Currently Sell for $20