JCW, a Private Equity firm, is interested in tendering 100% of JZ Inc's stock for $40 per share. In addition of purchasing all of the 10 milion JZ Inc. outstanding shares, JCW is planning to refinance the existing $250 million debt and pay $10 million of transaction fees. 50% of the financing will come from the Bank Loan, 25% of the financiang wil come from Mezzanine Note and the balance will come from Cash Equity. The financing information is outlined below: INFORMATION: Interest Rate Tax Rate Bank 5.00% Fixed 24.00% Mezzaning 8.00% Fixed 24.00% Equity Exp. Return (based on CAPM): Risk Free Rate Market Risk Beta 1.00% 9.00% 1.60x OUTPUT Amount ($ millions) Amount ($ millions) AFTER TAX Interest After Tax % Capital WACC TRANSACTION USES Equity Purchase Refinancing of Debt Transaction Fees TRANSACTION SOURCES Bank Loan Mezzanine Note Equity Total Uses Total Sources