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Ketchup Corporation is currently trading at $35 per share. There are 8 million shares outstanding, and the company has no debt. You believe that the
Ketchup Corporation is currently trading at $35 per share. There are 8 million shares outstanding, and the company has no debt. You believe that the value of the company would increase by 30% over 1 year if the management were replaced. How much would you gain from acquiring 60% of the Ketchup's shares by getting a 1-year, 10\%-interest loan? Hint: you are not using your own money. The money for the investment comes from the loan. Multiple Choice $0. $84,000,000 $107,520,000. $50,400,000. $33,600,000
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