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d'Anconia Copper is an all - equity firm with 6 0 million shares outstanding, which are currently trading at $ 2 0 per share. Last

d'Anconia Copper is an all-equity firm with 60 million shares outstanding, which are currently trading at $20 per share. Last month, d'Anconia announced that it will change its capital structure by issuing $300 million in debt. The $200 million raised by this issue, plus another $200 million in cash that d'Anconia already has, will be used to repurchase existing shares of stock. Assume that capital markets are perfect.
Report the following:
1. market capitalization of d'Anconia Copper before this transaction takes place
2. market capitalization of d'Anconia Copper after this transaction takes place
3. the number of shares that d'Anconia Copper will repurchase
4. the number of shares that d'Anconia Copper will have outstanding after conclusion of transaction
5. value of a share of d'Anconia Copper after the transaction

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