Zetatron is anall-equity firm with 290 million sharesoutstanding, which are currently trading for $21.76 per share. A monthago, Zetatron announced it will change its capital structure by borrowing $857 million inshort-term debt, borrowing $1023 million inlong-term debt, and issuing $916 million of preferred stock. The $2796 million raised by theseissues, plus another $84 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 Before thistransaction?

Account Amount

Cash ________million (Round to 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)

B. What is the market value of Zetaron After the new securities are issued but before the sharerepurchase?

Account Amount

Cash ________million (Round to 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)

C. What is the market value of Zetatron After the sharerepurchase?

Account Amount

Cash ________million (Round to 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)

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

Account Amount

Cash ________million (Round to 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)

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

_______Outstanding Shares

The price per share will be ________ (Round to 2 decimal places)