Firm A has a stock price of $40 and has made an offer for firm B where
Question:
a. How are the values 1.714 and 1.333 arrived at?
b. What is the value of the offer?
c. How sensitive is the value of the offer to the volatility of A’s stock?
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a This makes the amount paid as a function of S A continuous at the collar poin...View the full answer
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