Financial Management :- case study

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Manjushree Ursal (Querist)
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22 March 2008 A Co. has commenced a hostile tender offer to purchase all outstanding stocks of other Co. at Rs.61 a share. the other Co. is not satisfied with the offer as it thinks inadequate.so now this other Co. is reviewing a possibility of major recapitalisation.
effects of recapitalisation alternative :
maximum borrowing capacity Rs. 1738095
at a pre tax cost of debt of 10.5%
borrowings already there Rs. 172409
additional debt that can be taken Rs.1565685.

my query is now if this additional debt is taken what all things will be affected & effect on co.s book and market value balance sheet (items).Will M & M Approach be useful here?
Sir/Madam i request u to foward me the details of this case study.
thanking you,
Yours faithfully,
Manjushree Ursal
CA Final Student.

S.Srinivasaraghavan

S.Srinivasaraghavan (Expert)
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18 October 2008 Is the company listed?

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