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You work for a leveraged buyout firm and are evaluating a potential buyout of UnderWater Company. UnderWater's stock price is $12 and it has 3

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You work for a leveraged buyout firm and are evaluating a potential buyout of UnderWater Company. UnderWater's stock price is $12 and it has 3 million shares outstanding. You believe that if you buy the company and replace its management, its value will increase by 40%. You are planning on doing a leveraged buyout of UnderWater and will offer $14 per share for control of the company. Assuming you get 50% control, what will happen to the price of non-tendered shares? O A. $28.75 OB. $16.80 O C. $12 OD $9.80 Given the answer in part (a), will shareholders tender their shares, not tender their shares, or be indifferent? O A. They will not want to tender their shares. O B. They will all want to tender their shares. OC. They will be indifferent. What will your gain from the transaction be? O A $21 million OB. $50,4 million O c. $12.4 million OD. none of the other choice is correct

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