Multiple Choice
The Cycle Stop has 1,400 shares outstanding at a market price per share of $10.80. Kate's Wheels has 1,750 shares outstanding at a market price of $13 a share. Neither firm has any debt. Kate's Wheels is acquiring The Cycle Stop for $16,500 in cash. What is the merger premium per share?
A) $.27
B) $.46
C) $.99
D) $1.21
E) $2.20
Correct Answer:
Verified
Correct Answer:
Verified
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