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Executive Cheese has issued debt with a market value of $112.64 million and has outstanding 14 6 million shares with a market price of S10

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Executive Cheese has issued debt with a market value of $112.64 million and has outstanding 14 6 million shares with a market price of S10 a share It now announces that it Intends to issue a further $58.96 million of debt and to use the proceeds to buy back common stock. Debtholders, seeing the extra risk mark the value of the existing debt down to $63 million. Calculate the market price of the stock (Do not round intermediate calculations. Round your answer to 2 decimal places.) How many shares can the company buy back with the $58 96 million of new debt that it issues? (Do not round intermediate calculations. Enter your answer In millions rounded to 1 decimal place.) What is the market value of the firm (equity plus debt) after the change m capital structure? (Do not round intermediate calculations. Enter your answer In millions rounded to 2 decimal places.) What is the debt ratio after the change in structure'' (Do not round intermediate calculations. Round your answer to 2 decimal places.) Who (if anyone) gains or loses? The investors in the existing debt lose while the shareholders gain The investors m the existing debt gam while the shareholders lose

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