Executive Cheese has issued debt with a market value of $100 million and has outstanding 15 million shares with a market price of $10 a share. It now announces that it intends to issue a further $60 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 $70 million a-1. Calculate the market price of the stock following the announcement. 3-2. How is the market price of the stock affected by the announcement? b. How many shares can the company buy back with the $60 million of new debt that it issues? (Enter your answer in millions) c-1. What is the market value of the firm (equity plus debt) after the change in capital structure? (Enter your answer in millions) c2. Did the market value of the firm change? d. What is the debt ratio after the change in structure? (Round your answer to 2 decimal places.) e. Who (if anyone) galns or loses? a-1. Market price of the stock 0-2 Effect on market price Number of shares repurchased 0-1 Market value c2 Effect on market value d Debt ratio Who (if anyone) gains or loses? $ 12 Stock price increases milion milion