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Zetatron is an​ all-equity firm with 100 million shares​ outstanding, which are currently trading for

​$24.61 per share. A month​ ago, Zetatron announced it will change its capital structure by borrowing ​$279 million in​ short-term debt, borrowing $ 370 million in​ long-term debt, and issuing ​$404 million of preferred stock. The ​$1 comma 053 million raised by these​ issues, plus another $ 92 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.i. What is the market value balance sheet for Zetatron before this​ transaction?

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.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.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.)


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

 million ​(Round to two decimal​ places.)


The price per share will be  $ ____________(Round to two decimal​ places.)

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