Why is the senior management of HCA pursuing a LBO of the firm? How is HCA performing? What are the challenges that the firm faces going forward without the LBO? Does the LBO help resolve any of those challenges? If HCA announces the May 2006 EBITDA projections in Exhibit 7, how do you think analysts would revise HCAs stock price? See Exhibit 8 and calculate the analysts stock price performance (percent decline). Now consider managements predictions at the bottom of page 4: What assumption is management making to arrive at a price of almost $41? Are there any reasons for shareholders to be concerned about the LBO process? Consider Exhibit 7. Management revises Revenues and EBITDA forecasts between January and May of 2006. When did HCAs management ask Merrill Lynch to think of strategic alternatives? Any thoughts on why management would lower their earnings forecast at the time? Hints: To whom do managers owe a fiduciary duty? What role does the management team plan to take in a prospective LBO? Are their incentives aligned with their fiduciary duty