I need help with these 4 questions. I need the answers in 6 hours please. thank you so much. please find the attachments that would help you to answer the questions. Thank you for helping.
- How much value did Sealed Air’s leveraged recapitalization create for shareholders? To answer this question compute the change the Sealed Air’s market value of equity from 4/27/1989 to 4/28/1989. Your answer should be in millions, rounded to 2 decimals.
- What is the present value of the interest tax shields created by the new subordinated notes? Assume a 34% tax rate and that the notes require annual interest payments. Your answer should be in millions rounded to 2 decimals.
- What is the present value of the tax shields created by the new bank loan? Assume that the end of year 1989 is “year 0.” The tax rate is 34%. Your answer should be in millions rounded to 2 decimals.
- Which of the following may account for the difference in the change in market value you computed in Question 1 and the sum of the present value of the tax shields you computed in Questions 2 and 3?
A) All of the above
B) Agency Benefits of Debt
C) Bankruptcy Costs
D) Agency Costs of Debt
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