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:

ASE Certification

The certification body for automotive professionals across the United States. Certification tests are conducted online and in test centers.

Air Brake Systems

Pneumatic brake systems used primarily in heavy vehicles, utilizing compressed air to create the friction needed for stopping.

Heavy-duty Trucks

Trucks designed for large payload capacities and durability, used for commercial purposes such as hauling freight, construction materials, and specialized equipment.

GVW Categories

Classification system for vehicles that categorizes them based on their gross vehicle weight, which includes the total weight of the vehicle and its maximum load.