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

question 24

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.
-Regarding your tender offer,shareholders will:

• A)not tender their shares since the post LBO price is higher than the offer price.
• B)not tender their shares since the post LBO price is higher than the current price.
• C)tender their shares since the post LBO price is higher than the offer price.
• D)tender their shares since the post LBO price is lower than the current price.

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Definitions:

Stressful Situations

Scenarios that cause stress or anxiety, often requiring careful handling or adaptation.

Art Of Negotiation

The skillful practice of reaching mutually beneficial agreements or resolving disputes, involving techniques such as persuasion, strategic planning, and compromise.

Large Businesses

Corporations or enterprises that operate on a vast scale, often with extensive resources, employees, and market reach.

Small Ones

Refers to items, entities, or units that are lesser in size, quantity, or significance.