Evaluating a potential buyout

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You work for a leveraged buyout firm and are evaluating a potential buyout of U Company. U's stock price is $20, and it has 2 million shares outstanding. You believe that if you buy the company and replace its management, its value will increase by 40%. You are planning on doing a leveraged buyout of U, and will offer $25 per share for control of the company.

Reference no: EM131077618

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