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TKCorp's next target is AUWorks. AUWorks has 5 million shares outstanding, with a share price of $ 1 0 . The manager of TKCorp believes

TKCorp's next target is AUWorks. AUWorks has 5 million shares outstanding, with a share price of $10. The manager of TKCorp believes that the value of AUWorks will rise by 50% if TKCorp purchases AUWorks and alters the business strategies of AUWorks. TKCorp is going to use a leveraged buyout to control AUWorks. If TKCorp obtains 60% control of AUWorks and expects to have a gain of $22.5 million from this transaction, the offering price for each of AUWorks shares will be closest to:
Select one:
a. $13.7
b. $12.5
c. $12.2
d. $15.0

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