United Corporation is trading at $80/sh. and has 1,000,000 shares outstanding. Delta is buying Gamma...

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Finance

United Corporation is trading at $80/sh. and has 1,000,000 shares outstanding. Delta is buying Gamma Corporation for $30/sh. in a stock exchange in the ratio .6 United shares for each Gamma share. Gamma has 200,000 shares outstanding and trades at $20/sh. The merger gain is $5,000,000 and what is the projected price per share of the merged entity?

A. $60.00

B. $62.73

C. $59.09

D. $79.46

What form of hedging would you suggest for a pork producer that wishes to be protected from future price increases for the corn and wheat that it uses as feed for the hogs?

A. Buy futures contracts on these grains

B. Sell futures contracts on these grains

C. Buy a put option on these grains

D. B and C only

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