Alpha Inc., has just announced that it will be acquiring Bravo Inc., for $25/share in...
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Alpha Inc., has just announced that it will be acquiring Bravo Inc., for $25/share in an all- cash deal. On the day of the announcement, Alphas stock price declined from $42/share to $40/share, while that of Bravo Inc. increased from $12/share to $22/share. Which of the following can be inferred based on this information?
On the day of the announcement, the arbitrage discount is $3/share
On the day of the announcement, the arbitrage discount is $13/share
The acquisition premium in the deal is 83.33%
I only
II only
I and III
II and III
III only
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