Question

"The Master Manufacturing Company has just announced a tender offer for its own common stock. Master is offering to buy up to 100% of the company's stock at $20 per share contingent on at least 64% of the outstanding shares being tendered. After the announcement of the offer, the stock closed on the NYSE up 2.50 at $18.75. If a customer had 100 shares and sold at tomorrow's opening price, what is the price that he would receive per share?"

Answer 1

$0

Explanation:

As it is mentioned in the question that 64% of shares being tendered so at this condition the client has no confirmation with respect to the amount paid for the shares after deciding the tender

Therefore in the given case, the price received per share would be $0 and the other information i.e mentioned in the question is not relevant. Hence, ignored it