Schwartz Industry is an industrial company with 103.9 million shares outstanding and a market capitalization(equity value) of $3.36 billion. It has $2.27 billion of debt outstanding. Management have decided to delever the firm by issuing new equity to repay all outstanding debt.

a. How many new shares must the firmissue?

b. Suppose you are a shareholder holding 100shares, and you disagree with this decision. Assuming a perfect capitalmarket, describe what you can do to undo the effect of this decision.

a. How many new shares must the firmissue?

The firm must issue ? million shares. (Round to one decimalplace.)