This new information, and the previously$-$provided info, applies to all the remaining questions.

SSI is for sale for the price shown below $($for $100\%$ of the firm's stock$).$ Your Debt$/$Equity team would like to buy the firm and improve its capital structure. As part of the purchase transaction, your team will optimize SSI's capital structure for all stakeholders. $100\%$ of the stock will be purchased by a$)$ some of the equity team's cash, and b$)$ a loan made by the debt team to SSI on the purchase date.

Purchase price of firm's equity $(100\%$ of the firm's stock$)$: $$200\mathrm{.}00$ MM

The exisiting owners will be paid some of this amount from the equity members of your team. The existing owners will be paid the rest by SSI itself, using the proceeds of the loan made to SSI by the debt members of your team.

Question $7$

Based on your above analysis, what is the D$/($D$+$E$)$ ratio that you will set for the firm?

Group of answer choices

$35\%$

$9\%$

$60\%$

$55\%$

$20\%$

$75\%$

$45\%$

$15\%$

Question $8$

How much of the equity team's cash will be used to fund the purchase? Report your answer to one decimal place.

Question $9$

How large is the loan that SSI will take out from the debt team members to fund the rest of the purchase? Report your answer to one decimal place.