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you work Pergunta 9 ( 0 , 5 pontos ) You work for a leveraged buyout firm and are evaluating a potential buyout of Associated

you work Pergunta 9(0,5 pontos)
You work for a leveraged buyout firm and are evaluating a potential buyout of Associated Steel. Associated Steel's
stock price is $15 and it has 10 million shares outstanding. You believe that if you buy the company and replace its
management, its value will increase by 50%. You are planning on doing a leveraged buyout of Associated Steel, and
will offer $20 per share for control of the company.
Assuming you get 50% control of Associated Steel, then your gain from this transaction will be closest to:
$75.0 million
125.0 million
$50.0 million
$65.0 million
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