PEI Ltd.is considering acquiring Sask Corp.by offering one share of its common stock for .56 shares of Sask Corp.Currently,the market price of Quebec Corp.is $38.What is the cash bidding price proposed for this deal (rounded up)?
A)$89
B)$97
C)$90
D)$68

Question

Quizplus · Accepted Answer

The cash bidding price is calculated by multiplying the market price of PEI Ltd.'s stock by the exchange ratio. So, $38 * 0.56 = $21.28. Since the question asks for the price rounded up, the closest option is $68 (D), which seems to be a mistake in the calculation or the options provided. The correct calculation doesn't match any of the given choices accurately, indicating a potential error in the question or the provided options.

PEI LtdIs Considering Acquiring Sask Corp