Question: You work for a leveraged buyout frm and are evalusting a polentse boyout of UnderWater Company. UnderWaler's stock price is 521 and at has 200millon

 You work for a leveraged buyout frm and are evalusting a

You work for a leveraged buyout frm and are evalusting a polentse boyout of UnderWater Company. UnderWaler's stock price is 521 and at has 200millon shares outstanding You believe that if you buy the concavy and replace its exansgement, ts value wil increase by 39 th You are planning on deing a leveraged buyout of UnderWater and will offer 526.25 per share for control of the company. a. Assurting you get 507 control, what wall hoppen to the price of non-tondered shares? b. Given the answer in part (al, will shareholders iender their shares, not tender their shares, or be indiflerent? c. What will your gain from the transaction be? a. Assumng you get 50% control, what will heppen to the price of nontendered shaces? Share price will be? (Round to the neareat cent)

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