Accruex's investors accumulated 10% of Pivot Corporation's equity following John's tender offer to purchase shares for £78.Accruex believes that the equity will be worth £90 per share if the offer succeeds,but only £60 per share if the offer fails.If Accruex tenders its shares,the offer will succeed for sure.However,if the shares are not tendered,the offer has a 50% probability of failure.How much does Accruex get if it tenders the shares?
A) £60 per share
B) £150 per share
C) £75 per share
D) £78 per share
Correct Answer:
Verified
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