FIN 571 Team Assignment Effect of Debt Issuance on Stock Valuation Homework Help | Page 2

●
Construct the company's market value balance sheet before the announcement of
the debt issue. What is the price per share of the firm's equity?
●
Construct the company's market value balance sheet immediately after the
announcement of the debt issue.
●
What is the company's stock price per share immediately after the repurchase
announcement?
●
How many shares will the company repurchase as a result of the debt issue? How
many shares of common stock will remain after the repurchase?
● What is the required return on the company's equity after the restructuring?
● Discuss the advantages and disadvantages of debt financing over equity
financing. MY PORTION TO COMPLETE 250WORD COUNT
Show​ all calculations and submit with your memo.
Format​ your paper consistent with APA guidelines