Mayo Corporation is currently trading at $30 per share. There are 10 million shares outstanding, and the company has no debt
You believe that the value of the company would increase by 50% if the management were replaced. How much would you gain from acquiring 50% of Mayo's shares by borrowing, attaching the debt to the company and replacing the management?
A) $150 million
B) $225 million
C) $300 million
D) $10 million
Answer: A
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