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Executive Cheese has issued debt with a market value of $100.96million and has outstanding 15.40 million shares with a marketprice of $10 a share. It now announces that it intends to issue afurther $57.04 million of debt and to use the proceeds to buy backcommon stock. Debtholders, seeing the extra risk, mark the value ofthe existing debt down to $64 million.a. Calculate the market price of the stockfollowing the announcement. (Round your answer to 2 decimalplaces.)Price of the stock $b. How many shares can the company buy backwith the $57.04 million of new debt that it issues?(Enteryour answer in millions. Round your answer to 1 decimalplace.)Number of shares millionc. What is the market value of the firm (equityplus debt) after the change in capital structure?(Enteryour answer in millions. Round your answer to 2 decimalplaces.)Market value $ milliond. What is the debt ratio after the change instructure? (Round your answer to 2 decimalplaces.)Debt ratio e. Who (if anyone) gains or loses?The investors in the existing debt lose while the shareholdersgain.The investors in the existing debt gain while the shareholderslose.No one gains or loses.