Question: (B) Roxy Electronics operates in a perfect capital market. It wants to issue new equities and repay all the outstanding debt. As a shareholder, you

(B) Roxy Electronics operates in a perfect capital market. It wants

(B) Roxy Electronics operates in a perfect capital market. It wants to issue new equities and repay all the outstanding debt. As a shareholder, you do not like this decision. What would you do in this circumstance and why? Answer this question using the following information. Roxy has 20 million shares outstanding. The market capitalization $1200 million, and the amount of debt outstanding is $600 million. You have 250 shares of Roxy. Show your calculations. (2 marks) (B) Roxy Electronics operates in a perfect capital market. It wants to issue new equities and repay all the outstanding debt. As a shareholder, you do not like this decision. What would you do in this circumstance and why? Answer this question using the following information. Roxy has 20 million shares outstanding. The market capitalization $1200 million, and the amount of debt outstanding is $600 million. You have 250 shares of Roxy. Show your calculations. (2 marks)

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