Mayo Corporation Is Currently Trading at $30 Per Share

Multiple Choice

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