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Schwartz Industry is an industrial company with 92.5 million shares outstanding and a market capitalization (equity value) of $3.57 billion. It has $1.88 billion of

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Schwartz Industry is an industrial company with 92.5 million shares outstanding and a market capitalization (equity value) of $3.57 billion. It has $1.88 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 firm issue? b. Suppose you are a shareholder holding 100 shares, and you disagree with this decision. Assuming a perfect capital market, describe what you can do to undo the effect of this decision. a. How many new shares must the firm issue? The firm must issue million shares. (Round to one decimal place.) b. Suppose you are a shareholder holding 100 shares, and you disagree with this decision. Assuming a perfect capital market, describe what you can do to undo the effect of this decision. You should new shares and . (Select from the drop-down menus, round the number of shares to the nearest integer, and round the dollar amount to the nearest dollar.)

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