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Digital Fruit is financed solely by common stock and has outstanding 43 million shares with a market price of $10 a share. It now announces

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Digital Fruit is financed solely by common stock and has outstanding 43 million shares with a market price of $10 a share. It now announces that it intends to issue $340 million of debt and to use the proceeds to buy back common stock. There are no taxes. c. What is the market value of the firm (equity plus debt) after the change in capital structure? (Enter your answer in millions.) Market value million d. What is the debt ratio after the change in capital structure? (Enter your answer as a whole percent.) Debt ratio

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