You have been hired by Orange Brewery to help manage its captial structure. Currently, Orange has 671 million shares outstanding with a share price of $72.51, and $24.91 billion in debt. How much debt must Orange have if the expected future growth causes Orange to have 710 million shares outstanding trading for $87.19 per share. Assume that Orange maintains a constant debt-equity ratio. The amount of debt required for the new share price and shares outstanding will be___? billion. (Round to two decimal places.)

You have been hired by Orange Brewery to help manage its captial structure. Currently, Orange has 671 million shares outstanding with a share price of $72.51, and $24.91 billion in debt. How much debt must Orange have if the expected future growth causes Orange to have 710 million shares outstanding trading for $87.19 per share. Assume that Orange maintains a constant debt-equity ratio. The amount of debt required for the new share price and shares outstanding will be___? billion. (Round to two decimal places.)

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter23: Corporate Restructuring

Section: Chapter Questions

Problem 12P

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