What is the net cost of takeover-raider ltd

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If Raider Ltd, the acquirer, has 2 million shares with a market value of $4.00 each and Sucker Ltd, the target, has 1 million shares with a market value of $1.50 each, what is the net cost of takeover if Raider Ltd offers two of its own shares for every one share of Sucker Ltd? [Hint: use the formula, Net cost = b × VAT - VT ]

Reference no: EM132684012

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