th companies. Do not use facts from the previous section):

Assets $23.6 million	Debt $5 million
	Equity $18.6 million

Assets $8.5 million	Debt $4.5 million
	Equity $4 million

Alpha Tech (pre-deal) Beta Corp

Alpha Tech closing price: $155 Beta Corp closing price: $100 Shares outstanding: 120,000 Shares outstanding: 40,000

Alpha wants to increase its market share, so it is considering acquiring Beta. Supposed that Alpha Tech plans to announce its acquisition plans next week. The CFO has the weekend to figure out how to finance the acquisition and present the proposal to the board of directors of both companies. Analyze the three scenarios below:

An all-cash deal for a target price of $130. New debt will be issued in order to finance this entire deal. Calculate the following:

1. How much will it cost to finance this deal?
2. Calculate Alphas current leverage ratio (pre-deal) and its leverage ratio after acquiring Beta. Keep in mind that new debt was issued in order to finance the deal.