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  3. e) your firm announces that you will issue $50 mil

e) Your firm announces that you will issue $50 million in debt on top of...

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Accounting

e) Your firm announces that you will issue $50 million in debt on top of the $100 million in debt you now have. Your stock (10 million shares) is trading at $20 a share. If this announcement was a surprise, and investors believe you and that the all-in relative tax advantage od debt is 10%, fill in the following table with the values you expect for each item:

Now

After Announcement

After Execution

MV(Equity)

MV(Debt)

Number of Shares

Stock Price

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