BuyerCo is considering the acquisition of TargetCo. The table below reports some accounting and market data for the two companies

Company	Net Income	Tax Rate	Number of shares Outstanding	Stock Price
BuyerCo	$400	0%	1000	$2
TargetCo	$150	0%	500	$1

You are considering three possible deal structures:

• 100% Equity
• 50% Equity and 50% Cash
• 100% Cash

Determine which solution is more profitable for the buyer knowing that:

• the target company has no debt;
• the buyer has no cash on hand, so all cash payments will require issuing new debt (10% interest rate);
• buyer and target have agreed on an acquisition price of 2$ per share;
• there are no expected synergies.