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?
A)43.34%
B)33.45%
C)49.65%
D)47.62%

Question

Quizplus · Accepted Answer

The return on investment (ROI) can be calculated using the formula: [(Selling Price - Purchase Price) / Purchase Price] * 100. Here, the selling price is $31, and the purchase price is $21. So, the ROI = [($31 - $21) / $21] * 100 = (10 / 21) * 100 = 47.62%.

You Own Shares in Darling That Were Purchased at a Price