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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 $18 and it has 1.25

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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 $18 and it has 1.25 million shares outstanding. You believe that if you buy the company and replace its management its value wil ncrease by 40%. You aro plan ing on ding a leveraged buyout of Underwater and a l omar S 250 per share for control of the company a. Assuming you get 50% control, what will happen to the price of ron tendered shares? b. Given the answer in part (a), will shareholders tender their shares, not tender their shares, or be indifflerent? c. What will your gain from the transaction be? a. Assuming you get 50% control, what will happen to the poe of non-tendered shares? Assuming you get 50% control, te proe of non-tendered shares wil be S (Round to the nearest cent ) b. Given the answer in part (a), will shareholders tender their shares, not tender their shares, or be indfferent? (Select the best choice below. OA. They will all want to tender their shares

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