Question: Q13. I WILL LIKE ASAP QUESTION 13 - LEIC plc plans to acquire PEAR Plc. The timeline is as follows. Day 1 - Market values

Q13. I WILL LIKE ASAP

Q13. I WILL LIKE ASAP QUESTION 13 - LEIC plc plans to

QUESTION 13 - LEIC plc plans to acquire PEAR Plc. The timeline is as follows. Day 1 - Market values for shares are LEIC Plc 12, PEAR Plc 99. Day 4 - At a private meeting, the board of LEIC Plc decides to make a bid for PEAR plc at 106 per share (to try and avoid resistance). Day 8 - LEIC plc publicly announces their offer of 106 per share on all shares. Details of the operational savings are not announced and remain confidential. What are the share prices of LEIC and PEAR on Day 8 if the market is semi-strong-form efficient? A. LEIC 12 and PEAR 99 B. LEIC 12 and PEAR 106 C. LEIC greater than 12 and PEAR 106 D. LEIC less than 12 and PEAR 106

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