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Zetatron is an all-equity firm with 220 million shares outstanding, which are currently trading for $23.73 per share. A month ago, Zetatron announced it will
Zetatron is an all-equity firm with 220 million shares outstanding, which are currently trading for $23.73 per share. A month ago, Zetatron announced it will change its capital structure by borrowing $877 million in short-term debt, borrowing $693 million in long-term debt, and issuing $876 million of preferred stock. The $2,446 million raised by these issues, plus another $56 million in cash that Zetatron already has, will be used to repurchase existing shares of stock. The transaction is scheduled to occur today. Assume perfect capital markets. a. What is the market value balance sheet for Zetatron i. Before this transaction? ii. After the new securities are issued but before the share repurchase? iii. After the share repurchase? b. At the conclusion of this transaction, how many shares outstanding will Zetatron have, and what will the value of those shares be? a.i. What is the market value balance sheet for Zetatron before this transaction? Account Cash Non-Cash Assets Total Assets Total Liabilities Total Equity Amount million (Round to the nearest integer.) million (Round to the nearest integer.) million (Round to the nearest integer.) million (Round to the nearest integer.) million (Round to the nearest integer.) $ $ $ $ $ a.ii. What is the market value balance sheet for Zetatron after the new securities are issued but before the share repurchase? Account Amount Cash million (Round to the nearest integer.) Non-Cash Assets million (Round to the nearest integer.) Total Assets million (Round to the nearest integer.) Total Liabilities million (Round to the nearest integer.) Total Equity million (Round to the nearest integer.) A $ S a.iii. What is the market value balance sheet for Zetatron after the share repurchase? Account Amount Cash million (Round to the nearest integer.) Non-Cash Assets $ million (Round to the nearest integer.) Total Assets million (Round to the nearest integer.) Total Liabilities million (Round to the nearest integer.) Total Equity million (Round to the nearest integer.) $ $ S b. At the conclusion of this transaction, how many shares outstanding will Zetatron have, and what will the value of those shares be? At the conclusion of this transaction, the number of shares outstanding Zetatron will have is places.) million. (Round to two decimal The price per share will be $ (Round to two decimal places.) Zetatron is an all-equity firm with 220 million shares outstanding, which are currently trading for $23.73 per share. A month ago, Zetatron announced it will change its capital structure by borrowing $877 million in short-term debt, borrowing $693 million in long-term debt, and issuing $876 million of preferred stock. The $2,446 million raised by these issues, plus another $56 million in cash that Zetatron already has, will be used to repurchase existing shares of stock. The transaction is scheduled to occur today. Assume perfect capital markets. a. What is the market value balance sheet for Zetatron i. Before this transaction? ii. After the new securities are issued but before the share repurchase? iii. After the share repurchase? b. At the conclusion of this transaction, how many shares outstanding will Zetatron have, and what will the value of those shares be? a.i. What is the market value balance sheet for Zetatron before this transaction? Account Cash Non-Cash Assets Total Assets Total Liabilities Total Equity Amount million (Round to the nearest integer.) million (Round to the nearest integer.) million (Round to the nearest integer.) million (Round to the nearest integer.) million (Round to the nearest integer.) $ $ $ $ $ a.ii. What is the market value balance sheet for Zetatron after the new securities are issued but before the share repurchase? Account Amount Cash million (Round to the nearest integer.) Non-Cash Assets million (Round to the nearest integer.) Total Assets million (Round to the nearest integer.) Total Liabilities million (Round to the nearest integer.) Total Equity million (Round to the nearest integer.) A $ S a.iii. What is the market value balance sheet for Zetatron after the share repurchase? Account Amount Cash million (Round to the nearest integer.) Non-Cash Assets $ million (Round to the nearest integer.) Total Assets million (Round to the nearest integer.) Total Liabilities million (Round to the nearest integer.) Total Equity million (Round to the nearest integer.) $ $ S b. At the conclusion of this transaction, how many shares outstanding will Zetatron have, and what will the value of those shares be? At the conclusion of this transaction, the number of shares outstanding Zetatron will have is places.) million. (Round to two decimal The price per share will be $ (Round to two decimal places.)
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