Q20. Galt Industries has 50 million shares outstanding and a market capitalization of $1.25 billion. It also has $750 million in debt outstanding. Galt Industries has decided to de-lever the firm by issuing new equity and completely repaying all the outstanding debt. Assume perfect capital markets. (20 marks in total) a) Assuming perfect capital markets, calculate the number of shares that Galt must issue. (4 marks) b) Suppose you are a shareholder in Galt industries holding 100 shares, and you disagree with this decision to de-lever the firm. How much would a shareholder have to borrow and how many shares he/she would hold/buy to maintain the original leverage position? (8 marks) c) Explain why homemade leverage in reality (NOT perfect capital markets) doesn't give the same result as the company does. (8 marks)