Mercer Corp. has 10 million shares outstanding and $96 million worth of debt outstanding. Its current share price is $80. Mercer's equity cost of capital is 8.5%. Mercer has just announced that it will issue $346 million worth of debt. It will use the proceeds from this debt to pay off its existing​ debt, and use the remaining $250 million to pay an immediate dividend. Assume perfect capital markets. a. Estimate​ Mercer's share price just after the recapitalization is​ announced, but before the transaction occurs.
​Mercer's share price just after the recapitalization is​announced, but before the transaction occurs is $80. (Round to the nearest​ dollar.)
b. Estimate​ Mercer's share price at the conclusion of the transaction. (Hint​: Use the market value balance​ sheet.)​
Mercer's share price at the conclusion of the transaction is $55. (Round to the nearest​ cent.)
c. Suppose​ Mercer's existing debt was risk free with a 4.38% expected​ return, and its new debt is risky with a 5.01% expected return. Estimate​ Mercer's equity cost of capital after the transaction.
​Mercer's equity cost of capital after the transaction is ​%. (Round to two decimal​ places.)

Owning a word is a characteristic of a powerful a. productb. servicec. organization d. brand

Do a swot analysis for the business idea you chose in question 2 above. describe at least 2 strengths, 2 weaknesses, 2 opportunities, and 2 threats for that company idea.

The gilbert instrument corporation is considering replacing the wood steamer it currently uses to shape guitar sides. the steamer has 6 years of remaining life. if kept,the steamer will have depreciaiton expenses of $650 for five years and $325 for the sixthyear. its current book value is $3,575, and it can be sold on an internet auction site for$4,150 at this time. if the old steamer is not replaced, it can be sold for $800 at the endof its useful life. gilbert is considering purchasing the side steamer 3000, a higher-end steamer, whichcosts $12,000 and has an estimated useful life of 6 years with an estimated salvage value of$1,500. this steamer falls into the macrs 5-year class, so the applicable depreciationrates are 20.00%, 32.00%, 19.20%, 11.52%, 11.52%, and 5.76%. the new steamer is fasterand allows for an output expansion, so sales would rise by $2,000 per year; the newmachine's much greater efficiency would reduce operating expenses by $1,900 per year.to support the greater sales, the new machine would require that inventories increase by$2,900, but accounts payable would simultaneously increase by $700. gilbert's marginalfederal-plus-state tax rate is 40%, and its wacc is 15%.a. should it replace the old steamer? b. npv of replace = $2,083.51