Developed effective gene therapy for diabetes

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Question

You are considering acquiring a firm rumored to have developed an effective gene therapy for diabetes. Its value depends on this therapy. If the therapy is effective, it is worth $200 per share; otherwise it is worth no more than $40 per share. Your firm's management and marketing strengths should increase the share price by at least 50% in either case. You must make an offer before the results of clinical trials are in. The owner will sell for the right price. Make an offer for the firm.

Reference no: EM133392573

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