Risk Arbitrage: Suppose that a target firm has been trading at $20: Pt = $20. The Acquirer has been trading at $30: Pa = $30. • The Acquirer offers one of its shares for one of the target’s shares. • Pt increases to $25 before arbitrager can buy. • Pa falls to $27 before arbitrager can sell short. If the arbitrageur buys 100 shares of the target and short sells 100 shares of the acquirer, what is the annualized return for the arbitrageur if the deal closes in 90 days? (Assume that the deal does go through, the short position is covered when the deal closes, and there are no dividends). The annualized return is __________. (Use 2 decimal places).
United Airlines’ merger with Continental Airlines is an exam…
United Airlines’ merger with Continental Airlines is an example of:
John has a long-term goal of graduating with a bachelor’s de…
John has a long-term goal of graduating with a bachelor’s degree in engineering. His advisor suggests that he needs to create a plan to reach this goal. What is the first step John should take in creating his plan?
Johnny recently graduated with his associate’s degree in his…
Johnny recently graduated with his associate’s degree in history. He would like to work as a public-school teacher. Unfortunately, he is not qualified to work in this position. Why do you think he is not qualified for this position?
Which of the following is NOT a way to gain additional real-…
Which of the following is NOT a way to gain additional real-world experience outside of your coursework?
Lolina has joined a student organization, developed relation…
Lolina has joined a student organization, developed relationships with faculty in her major, and is spending time practicing for job interviews. Which of the following would also support Lolina’s career preparation?
Identify the shape of the bone. 1. [answer1] 2. [answer2] 3…
Identify the shape of the bone. 1. 2. 3.
Identify from the following compounds those having conjugate…
Identify from the following compounds those having conjugated double bonds.
The reaction of 1,3-butadiene with a hydrohalide at 0°C will…
The reaction of 1,3-butadiene with a hydrohalide at 0°C will undergo a ________ under ________ control.
Calculate the degree of unsaturation for C9H11N.
Calculate the degree of unsaturation for C9H11N.