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13. Given the enterprise value calculation below, show the necessary adjustments and pro forma amounts if the company issues $100.0 milion of equity and uses the proceeds to repay debt. 困(S in millions) Pro forma 2007 Actual Adjustments 2007 Equity Value Plus: Total Debt Plus: Preferred Stock Less: Cash and Cash Equivalents $1,000.0 250.0 50.0 70.0) $1,230.0 Enterprise Value

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Atua Adjustments 100 -100 Equity Plus: Total debt Plus: Preferred debt Less: Cash and cash equivalents Proforma 1100 150 50 -70 1230 1000 250 50 No change -70 No change 1230

100 million equity is issued and the same is used to repay the debt, hence there is no net change.

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