1. At the time a management group of RJR Nabisco initially considered engaging in a leveraged buyout, RJRs stock price was less than $70 per share. Ultimately, RJR was acquired by the firm Kohlberg Kravis Roberts for about $108 per share.
Does the large discrepancy between the stock price before an acquistion was considered and after the acqusition mean that RJRs price was initially undervalued? If so, does this imply that the market was inefficient? Get Finance homework help today