Task 1: Capital structure and dividend policy A large travel company owns a resorts and hotels. The CFO wants to change the company's capital structure. The change will mean that debtratio (debt-to-value-ratio) is increased to 50% by a large issuance of new debt and an extraordinary payout to shareholders. The company's marginal tax rate is 30%. It has 200 million outstanding shares with the current price of $36 per share. Market value of the company's total debt is $1800 million, spread over outstanding bond with a market value of $850 million and a creditline with the company's main bank where floating rate is 5% and outstanding debt is $950 million.

A) What is the current (debt-to-value ratio)?

D/E+D = Debt-to-value-ratio

Answer; 1800/7200+1800 = 20%

B) What would the value of the company have been if it had not been leveraged?

MM proposition 1 with taxes: VL=V_u+T_cD

9000"=V_u+0.30x1800"

9000"=V_u+540"

9000"-540"=V_u

V_u = 8460"

C) How much debt is required to implement the new capital structure?

I need help with proper calculation of this task. I know the answer but I need to see the calculated answer. The correct answer to the task is: 3176,5 

D) What is the effect on the number of shares outstanding and how big it is extraordinary dividend?

I need help with proper calculation of this task. I know the answer but I need to see the calculated answer. The correct answer to the task is: $15.88 per share.