contestada

The Master Manufacturing Company has just announced a tender offer for its own common stock. Master is offering to buy up to 100% of the company's stock at $20 per share contingent on at least 64% of the outstanding shares being tendered. After the announcement of the offer, the stock closed on the NYSE up 2.50 at $18.75. If a customer had 100 shares and sold at tomorrow's opening price, what is the price that he would receive per share?
A. $18.75
B. $20.00
C. $20.50
D. $21.25

Respuesta :

Answer:

b.$18.75

Explanation:

The customer will receive the stock at this price because master manufacturing company's stock is contingent at 64% and we are told that this is a tender offer so when master buys back the shares they wont buy at the same price in which they sold for which is $20.00 that way they wouldn't make more profit from the shares where contingency is assurance that master manufacturing can transfer 64% of the shares back.

Otras preguntas