1. You own 10,000 shares of Mars Co. which is currently trading for $11.50 per share. The company has announces that it will soon pay a special dividend of $1.50 per share. Tomorrow is the ex-dividend day. Ignoring taxes, what do you expect your block of shares will be worth tomorrow?
2. How do undervaluation, synergy, and mismanagement contribute to incremental firm value when acquiring a target firm?