Mercer Corp, is a equity firm with 10 million shares outstanding and $127 million worth of debt outstanding. Its current share price is $77. Morcer's equity cost of captal is 8.5\%. Mercer has pust announced that it will issue $382 millon worth of debt. I will use the proceeds from this debt to pry ofl its existing debe, and use the remaining $255 milion to pay an immediate dividend. Assume perfect capital markets. a. Estimate Mercer's share price just afier the recaptalization is announced, but before the transaction cocurs. b. Estimate Mercer's share price at the conclusion of the transaction. (Hint: use the market value balance sheet.) c. Suppose Mercer's existing debt was risk-free with a 4.63% expected return, and its now debt is risky with a 5.07,iexpected return. Estimate Mercer's equity cost of caqtal after the transaction. a. Estimate Morcer's share price just aftor the recoptalizafion is announcod, but before tho transaction occurs