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You are the CFO of Lissue Inc. The top management team has been discussing the possibility of increasing corporate leverage. The firm's book value balance

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You are the CFO of Lissue Inc. The top management team has been discussing the possibility of increasing corporate leverage. The firm's book value balance sheet appears as follows Book Value Balance Sheet Current Assets Fixed Assets Total Assets 39,503 253,926 293,429 Accounts Payable 52,827 Long-Term Liabilities 14,290 Long-Term Debt 61,277 Total Liabilities 128,394 Equity 165,035 Total Liabilities & Equity 293,429 The company has 5123 shares of common stock outstanding, which are selling for $5393. The firm's effective tax rate is 16% Assume that the market value of current assets, accounts payable and long-term debt are equal to their book value. Also, assume the market value of long-term liabilities is $0. You have been told to examine the effect of issuing $55,000 in new long-term debt to the capital structure. You assume that the 1963 Miller & Modigliani framework holds in this case What is the market value of fixed assets? (Do not round Intermediate calculations and round your answers to the single digits place, e.g. 13276) Help se Total Liabilities 128,394 Equity 165,035 Total Liabilities & Equity 293,429 The company has 5123 shares of common stock outstanding, which are selling for $53.93. The firm's effective tax rate is 16% Assume that the market value of current assets, accounts payable and long-term debt are equal to their book value. Also, assume the market value of long-term liabilities is $0. You have been told to examine the effect of issuing $55,000 in new long-term debt to the capital structure. You assume that the 1963 Miller & Modigliani framework holds in this case. What is the market value of fixed assets? (Do not round intermediate calculations and round your answers to the single digits place, e.g. 13276) What is the market value of equity after recapitalization? (Do not found intermediate calculations and round your answers to the single digits place, e g. 13276) What is the share price after recapitalization if the funds raised are paid out as a special dividend? (Do not round intermediate calculations and round your answers to 2 decimal places, eg, 4287) What is the special dividend per share paid to each shareholder? (Do not round intermediate calculations and round your answers to 2 decimal places, e.g. 2.96.) What is the share price after recapitalization if the funds raised are used to repurchase shares? (Do not round intermediate calculations and round your answers to 2 decimal places, eg. 42.87) How many shares will be purchased in the buyback? (Do not round intermediate calculations and round your answers to the single digits place, e9.. 326)

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