Caramel Corp. is an all-equity financed company. It has 10 million shares outstanding. The current share price is $50. Peter, an experienced corporate raider, believes that Caramel has substantial corporate governance issues. Its Board has become captured and fails to monitor the executives. As a result, the company is highly inefficient. If the dysfunctional executives and directors were replaced, the company's shares would be worth $55. If Peter takes over Caramel Corp. through a leveraged buyout what is the maximum amount of value he could extract from the company?

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