Timbuktu Technologies Is an All-Equity Firm That Is Currently Trading

question 35

Multiple Choice

Timbuktu Technologies is an all-equity firm that is currently trading at $22 per share,with 50 million shares outstanding.You believe that by replacing management,you can increase the value of the firm by 50%.What is the maximum amount of value you can extract in a leveraged buyout for 50% of the outstanding shares?

• A)$550 million
• B)$1.1 billion
• C)$1.65 billion
• D)$650 million
• E)$225 million

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Definitions:

Recapped

The act of covering a needle with a cap or putting a cap back on a container to prevent contamination or exposure.

Injectable Medication

Drugs that are administered through a needle or syringe directly into the body tissue, bloodstream, or muscles.

Round Dose

The process of adjusting a medication's dosage to a more convenient or standardized figure for administration.

Parenteral Routes

Methods of administering drugs by means other than through the digestive system, such as intravenous, intramuscular, or subcutaneous injection.