d'Anconia Copper is currently an all$-$equity firm with assets worth $($market value$)$ $$80$ billion and $10$ billion shares outstanding. d'Anconia Copper plans to borrow $$25$ billion and then use these funds to repurchase shares. The firm's corporate tax rate is $20\%$ and d'Anconia Copper plans to keep its outstanding debt equal to $$25$ billion permanently.

Question:

Suppose danconia copper offers $$9$ per share and shareholders tender their shares at this price. The number of shares danconia copper will have outstanding following this $$9$ tender off will be closest to$?$

$10\mathrm{.}000$ billion

$7\mathrm{.}222$ billion

$7\mathrm{.}059$ billion

$7\mathrm{.}159$ billion

$6\mathrm{.}875$ billioN

Question $2$:

Suppose dancinua copper offers $$9$ per share and shareholders tender their shares at this price. The price of danconia copper shares following this $$9$ tender offer will be closest to$?$

$$8\mathrm{.}31$

$$9\mathrm{.}00$

$$8\mathrm{.}50$

$$8\mathrm{.}00$

$$8\mathrm{.}73$

Question $3$:

The lowest price that danconia copper can offer and still have share holders tender their shares is closest to$?$

$$8\mathrm{.}65$

$$8\mathrm{.}80$

$$9\mathrm{.}00$

$$8\mathrm{.}00$

$$8\mathrm{.}50$

Question $4$:

Assuming that daconia copper offers the lowest offer price acceptable to shareholders and shareholders tender their sales at this price, the number of shares outstanding following this tender offer would be closest to$?$

$8\mathrm{.}000$ billion

$7\mathrm{.}222$ billion

$7\mathrm{.}159$ billion

$6\mathrm{.}875$ billion

$7\mathrm{.}059$ billion