You own shares in Supernova Inc. that were purchased at a price of $23 per share. Quicksilver

Inc. has offered to purchase Supernova Inc. and buy your shares at a price of $34 per share.

What will be your return if you tender your shares to Quicksilver Inc. and the deal is

completed?

A) 47.83%

B) 33.48%

C) 50.22%

D) 45.43%

A) 47.83%

Explanation:

The computation of the return is shown below:

= (Supernova price per share - owned purchase price per share) : (owned purchase price per share) * 100

= ($34 per share - $23 per share) : ($23 per share) * 100

= ($11 per share) : ($23 per share) * 100

= 47.83%

Simply we take the difference per share and then divide it by the owned purchase price per share so that the accurate rate of return can be computed