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Ketchup Corporation is currently trading at $40 per share. There are 0.5 million shares outstanding, and the company has no debt. You believe that the

Ketchup Corporation is currently trading at $40 per share. There are 0.5 million shares outstanding, and the company has no debt. You believe that the value of the company would increase by 20% over 1 year if the management were replaced. How much would you gain from acquiring 60% of 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. $4,000,000. $0. $2,400,000. $1,320,000 $1,200,000.
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Ketchup Corporation is currently trading at \\( \\$ 40 \\) per share. There are 0.5 million shares outstanding, and the company has no debt. You believe that the value of the company would increase by \20 over 1 year if the management were replaced. How much would you gain from acquiring \60 of 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. \\( \\$ 4,000,000 \\). \\( \\$ 0 \\). \\( \\$ 2,400,000 \\). \\( \\$ 1,320,000 \\). \\( \\$ 1,200,000 \\)

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