You work for a leveraged buyout firm and are evaluating a potential buyout of

UnderWater Company. UnderWater's stock price is $$18\mathrm{.}90$ and it has $1\mathrm{.}25$

million shares outstanding. You believe that if you buy the company and replace

its management, its value will increase by $41\%.$ You are planning on doing a

leveraged buyout of UnderWater and will offer $$23\mathrm{.}63$ per share for control of the

company.

a$.$ Assuming you get $50\%$ control, what will happen to the price of non$-$tendered

shares?

b$.$ Given the answer in part $($a$),$ will shareholders tender their shares, not tender

their shares, or be indifferent?

c$.$ What will your gain from the transaction be$?$

a$.$ Assuming you get $50\%$ control, what will happen to the price of non$-$tendered

shares?

Assuming you get $50\%$ control, the price of non$-$tendered shares will be $

$($Round to the nearest cent.$)$