The Great White Shark Company makes a surprise cash offer of $22 a share for Goldfish Industries.

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Question:

The Great White Shark Company makes a surprise cash offer of $22 a share for Goldfish Industries. Before the offer, Goldfish was selling for $18 a share. Goldfish has 1 million shares outstanding. What must Great White believe about the present value of the improvement it can bring to Goldfish’s operations?