Use the following information to answer the question(s) belo…

Use the following information to answer the question(s) below. Table for Dividends Year(s) Capital Gains Dividends 1987 28% 39% 1988 – 1990 28% 28% 1991 – 1992 28% 31% 1993 – 1996 28% 40% 1997 – 2000 20% 40% 2001 – 2002 20% 39% 2003 – 2009 15% 15%

You work for a levered buyout firm and are evaluating a pote…

You work for a levered buyout firm and are evaluating a potential buyout of Boogle Inc. Boogle’s stock price is $18, and it has 3 million shares outstanding. You believe that if you buy the company and replace its dismal management team, its value will increase by 50%. You are planning on doing a levered buyout of Boogle and will offer $25 per share for control of the company. Assuming you get 50% control, what will your gain from the transaction be?