Rationality and stock price effects

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Reference no: EM131995619

RATIONALITY AND STOCK PRICE EFFECTS - Assume that Disney does make a tender offer for its shares but pays $80 per share. What will happen to the value per share for the shareholders who do not sell back?

? The share price will drop below the pre-announcement price of $67.71.

? The share price will be between $67.71 and the fair value (above) of $78.61.

? The share price will be higher than $78.61.

Reference no: EM131995619

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