a firm has 101 shareholders. 100 of the shareholders each own 1 share. the remaining shareholder is an activist hedge fund manager who owns 26 shares. the current share price is $18 per share. management is trying to buy out the activist hedgefund manager's shares at $23 per share. if this goes through, what wilk be the percentage decline in the share value of the 100 remaining shares? give your answer to the nearest 0.1% (correct answer is 7.2%)

a firm has 101 shareholders. 100 of the shareholders each own 1 share. the remaining shareholder is an activist hedge fund manager who owns 26 shares. the current share price is $18 per share. management is trying to buy out the activist hedgefund manager's shares at $23 per share. if this goes through, what wilk be the percentage decline in the share value of the 100 remaining shares? give your answer to the nearest 0.1% (correct answer is 7.2%)

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter15: Dividend Policy

Section: Chapter Questions

Problem 11P

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