14.18 Using the M&A Valuation and Deal Structuring Model accompanying this text (see the website address in the “Chapter Overview” section of this chapter):

a. On the Transaction Summary Worksheet, under the heading Form of Payment, change the composition of the purchase price to 100% cash. Assume the purchase price is partially financed by reducing Acquirer excess cash by $1 billion and by raising $4 billion by issuing new Acquirer equity. Under the Sources and Uses heading, how is the remainder of the purchase price financed?

b. Change the composition of the purchase price to 100% equity, what is the impact on how the purchase price is financed? Close model but do not save the results.