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

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