You work for a leveraged buyout firm and are evaluating a potential buyout of UnderWater Company.$$ UnderWater's stock price is $ $17$ and it has $1\mathrm{.}75$ million shares outstanding.You believe that if you buy the company and replace its$$ management, its value will increase by $36\%.$ You are planning on doing a leveraged buyout of UnderWater and will offer $ $21\mathrm{.}25$ 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$?$