Question: Given the assumptions below, calculate the appropriate premium paid using the correct reference point. Report your answer as a %, rounded to two decimals (i.e.,

Given the assumptions below, calculate the appropriate premium paid using the correct reference point. Report your answer as a %, rounded to two decimals (i.e., if your answer is 0.6802 answer 68.02.

Assumptions

Offer Price per Share

$20.00

Target Share Price 1 month before acquisition

$16.00

Target Share Price 1 day before acquisition

$18.00

Target Share Price on day of acquisition

$19.50

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