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For Questions 1 3 to 1 6 , use the following information:Biotech Avenger is a small firm engaged in genetic research. It is an all
For Questions to use the following information:Biotech Avenger is a small firm engaged in genetic research. It is an allequity firm with million shares outstanding. The current market capitalization is million.The firm has just announced that it will change its capital structure by issuing million in debt and also use an existing million in cash to repurchase existing shares.Assume perfect capital markets Find the share price of Biotech Avenger before and after the restructure Find the debttoequity ratio after the restructure Find the number of outstanding shares repurchased in the transaction You hold shares of Biotech Avenger and you disagree with the decision to lever the firm. Describe how you can undo the decision.
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