You are evaluating a potential leveraged buyout of Flight to End (FTE). FTE's stock price is $16, and it has 2 million shares outstanding. You believe that if you buy the company and replace its management team, its value will increase by 25%. You are planning on doing a levered buyout of FTE and will offer $20 per share for control of the company. Assuming you get 40% control, what will your gain from the transaction be?

Group of answer choices

4000000

16000000

0

160000

400000