Zetatron is anall-equity firm with 140 million sharesoutstanding, which are currently trading for $17.04 per share. A monthago, Zetatron announced it will change its capital structure by borrowing $360 million inshort-term debt, borrowing $391 million inlong-term debt, and issuing $318million of preferred stock. The $1,069 million raised by theseissues, plus another $76 million in cash that Zetatron alreadyhas, 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 thistransaction?

ii. After the new securities are issued but before the sharerepurchase?

iii. After the sharerepurchase?

b. At the conclusion of thistransaction, how many shares outstanding will Zetatronhave, and what will the value of those sharesbe?

a.i. What is the market value balance sheet for Zetatron before thistransaction?

________Account_____________________________Amount_____

Cash$_____million (round to nearest integer)

Non Cash Assets$_____million (round to nearest integer)

Total Assets $_____million (round to nearest integer)

Total Liabilities $_____million (round to nearest integer)

Total Equity $_____million (round to nearest integer)