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Please help Mercer Corp. has 10 million shares outstanding and $75 million worth of debt outstanding. Its current share price is $78 Mercer's equily cost

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Mercer Corp. has 10 million shares outstanding and $75 million worth of debt outstanding. Its current share price is $78 Mercer's equily cost of capital is 8.5% Mercer has just announced that It will issue $357 million worth of debt. It will use the proceeds from this debt to pay off its existing debt and use the remaining 5282 million to pay an immediate dividend. Assume perfect capital markets a. Estimate Mercer's share price just after the recapitalization is announced but before the transaction occurs 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 442% expected retum, and its new debt is risky with a 4 61%expected retum Estimato Mercer's equity cost of capital after the transaction a. Estimate Mercer's share price just after the recapitalization is announced, but before the transaction occurs Merce's share price just after the recapitalization is announced, but before the transaction occursis (Round to the nearest dollar) b. Estimate Mercer's share price at the conclusion of the transaction. (Hint Use the market value balance sheet) Mercur's share price at the conclusion of the transaction is Round to the nearest cent.) c. Suppose Mercer's existing debt was risk free with a 442% expected return and its new debt is risky with a 481% expected return. Estimate Mercer's equity cost of capital after the transaction Mercer's equity cost of capital after the transaction is Round to two decimal places)

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