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Suppose Bank A's Stock Price Is $75 and Bank B's

Question 75

Multiple Choice

Suppose Bank A's stock price is $75 and Bank B's stock price is $25.Bank A is planning to purchase Bank B by paying Bank B's shareholders a bonus of $10 per share.What is the merger premium that Bank B's shareholders will receive?


A) 110 percent
B) 46.6 percent
C) 200 percent
D) 140 percent
E) None of the options is correct

Correct Answer:

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