QUESTION 13LEIC plc plans to acquire PEAR Plc. The timeline is as follows. Day 1- Market values for shares are LEIC Plc £12, PEAR Plc £99. Day 4 -At a private meeting, the board of LEIC Plc decides to make a bid for PEAR plc at £106 per share (to try and avoid resistance). Day 8 –LEIC plc publicly announces their offer of £106 per share on all shares. Details of the operational savings are not announced and remainconfidential. What are the share prices of LEIC and PEAR on Day 8 if the market is semi-strong-form efficient?A. LEIC £12 and PEAR £99OB. LEIC £12 and PEAR £106C. LEIC greater than £12 and PEAR £106D. LEIC less than £12 and PEAR £106

According to the Efficient Market Hypothesis (EMH), current stock prices adjust fast to new public…

Answered: LEIC plc plans to acquire PEAR Plc. The…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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