On Monday, July 13, 2020, Analog Devices, Inc. announced that it had entered into a definitive merger agreement with Maxim Integrated Products, Inc. Under the terms of the deal, valued at about $21.3 billion, Maxim shareholders would receive 0.63 shares of Analog Devices in exchange for each share of Maxim common stock they own. On the announcement day, Maxim closed at $69.29 per share while Analog Devices closed at $117.25 per share. The S&P 500 index closed at 3,155.22 on the same day. Closing prices on Friday, July 10, 2020, were $64.09, $124.50, and 3,185.04 for Maxim, Analog Devices, and the S&P 500, respectively. Maxim's beta is 1.32 while Analog Devices's beta is 1.35.

What is the announcement day abnormal return for Analog Devices?

Answer rating: 100% (QA)

Abnormal return for Analog Devices 617 rounded off as tabulated below ... View the full answer