Zetatron is an? all-equity firm with 270 million shares? outstanding, which are currently trading for ?$16.62...

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Zetatron is an? all-equity firm with 270 million shares?outstanding, which are currently trading for ?$16.62 per share. Amonth? ago, Zetatron announced it will change its capital structureby borrowing ?$672 million in? short-term debt, borrowing $ 812million in? long-term debt, and issuing ?$636 million of preferredstock. The ?$2 comma 120 million raised by these? issues, plusanother $ 75 million in cash that Zetatron already? has, will beused to repurchase existing shares of stock. The transaction isscheduled to occur today. Assume perfect capital markets.

a. What is the market value balance sheet for Zetatron

i. Before this? transaction?

ii. After the new securities are issued but before the share?repurchase?

iii. After the share? repurchase?

b. At the conclusion of this? transaction, how many sharesoutstanding will Zetatron? have, and what will the value of thoseshares? be?

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Zetatron is an? all-equity firm with 270 million shares?outstanding, which are currently trading for ?$16.62 per share. Amonth? ago, Zetatron announced it will change its capital structureby borrowing ?$672 million in? short-term debt, borrowing $ 812million in? long-term debt, and issuing ?$636 million of preferredstock. The ?$2 comma 120 million raised by these? issues, plusanother $ 75 million in cash that Zetatron already? has, will beused to repurchase existing shares of stock. The transaction isscheduled to occur today. Assume perfect capital markets.a. What is the market value balance sheet for Zetatroni. Before this? transaction?ii. After the new securities are issued but before the share?repurchase?iii. After the share? repurchase?b. At the conclusion of this? transaction, how many sharesoutstanding will Zetatron? have, and what will the value of thoseshares? be?

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