Question: I'm having trouble with what to do with the calculation with the addition of debt. Any help would be appreciated. Perfect capital markets SMU Corp

I'm having trouble with what to do with the calculation with the addition of debt. Any help would be appreciated.

Perfect capital markets SMU Corp is currently an all-equity company with 60 million shares outstanding, which are currently trading at $20 per share. Additionally, SMU Corp has $200 million in cash. SMU recently announced that it will change its capital structure by issuing $300 million in debt. The $200 million raised by this issue, plus all its $200 million in cash will be used to repurchase existing shares of stock. Find SMU's value of equity (market cap) at the end of this transaction

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