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Tiffany is seeking a $6B acquisition/ They will fund this aquisition by issuing $5B of new debt and $1B of new equity. (a) Estimate interest

Tiffany is seeking a $6B acquisition/ They will fund this aquisition by issuing $5B of new debt and $1B of new equity.

(a) Estimate interest rate on new debt.

(b) Estimate cost of capital

(c) How many new shares will they need to issue?

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