HuntCorp is trading, on the 4th of July, at $10. On the 5th of July, Hungry Joe announces the intention to buy the company, and HuntCorp's share price reacts by soaring to $15. On the 7th of July Big Ben announces that they would also like to take over the company, and the price of HuntCorp goes to $16. After few weeks of negotiations Big Ben completes the acquisition paying $18 for each share of HuntCorp. 

What is the purchase premium price paid by Big Ben?

Answer rating: 100% (QA)

The purchase premium price paid by Big Ben can be calculated as the difference betwe... View the full answer