Question 4 (2 points): Irish Incorporated has 5 million shares outstanding and market equity worth $ 200 million. It has $ 50 million in debt outstanding. Management has decided to raise equity to pay for the debt. Suppose you own 40 shares of the company and you disagree with the management's decision and wish to undo the effect. Assume markets are perfect. In that case you would buy shares and borrow $ a. 10, $ 400 b. 40, $ 0 c. 110, $ 1,600 d. 110, $ 2,000 e. None of the above Question 5 (2 points): Whiteburn Inc. has $ 100 million of debt and 40 million shares trading at $ 20/share. The current cost of equity is 8% and the cost of debt is 4%.. The company decides to raise an additionat $ 200 million in new debt with a cost of debt of 4%. The new debt proceeds will be used to pay down the existing debt and the rest will be used to pay a dividend to shareholders. Markets are perfect. What is the price per share after the transaction is completed? a. $ 17.85/share b. $ 22.75/share c. $ 16.00 /share d. $ 20.00/share e. None of the above 10 million shares