Use the Following Information to Answer the Question(s)below

question 2

Multiple Choice

Use the following information to answer the question(s) below.
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 the price of the non-tendered shares will be closest to:

• A)$12.50.
• B)$15.00.
• C)$17.50.
• D)$20.00.

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Definitions:

Northern U.S. Manager

A managerial position located in the northern region of the United States, potentially with specific regional leadership characteristics.

Brusque

Characterizing a person or manner of speaking that is abrupt or offhand in speech or manner, often lacking in formalities or courteousness.

Global Corporate Performance

A measure of a corporation's overall efficiency, profitability, and market position on an international scale.

Patriotism

Love for or devotion to one's country.