Weatherhead Bakery in considering acquiring Donuts Express. Their current stock price, number of shares outstanding and balance sheets are below:

Donuts Express

Assets $7 million	Debt $2 million
	Equity $5 million (200,000 shares at $25 each)

Weatherhead Bakery(Pre-deal)

Assets $60 million	Debt $10 million
	Equity $50 million (1M shares at $50 each)

Weatherhead Bakery -closing price: $50 & Shares Outstanding 1,000,000

Donuts Express- closing price: $25 & Shares outstanding: 200,000

Suppose that Weatherhead Bakery will announce the acquisition tomorrow, but is still unsure on how to finance the deal. Analyze the scenario below:

A 25% cash and 75% stock deal for a target price of $30.50. New debt will be issued to finance the 25% cash portion. Calculate the following

1. How much will it cost Weatherhead Bakery to buy all outstanding shares of Donut Express?
2. What is the exchange ratio?
3. If you were a Donuts Express shareholder and owned 25 shares, how many shares of Weatherhead Bakery will you receive and how much will you receive in cash? (1 pts)
4. How many shares will Weatherhead Bakery have to issue in order to finance this deal?
5. Calculate Weatherhead Bakerys leverage ratio after acquiring Donuts Express. Keep in mind that Weatherhead Bakery issued both new equity and new debt to finance this deal.
6. Donuts Express shareholders will now own shares of Weatherhead Bakery. What percentage of ownership will Donuts Express shareholders have over Weatherhead Bakery?