There is a firm, which we have identified to buy. It has $100 million, $30 and $70 m assets, equity and debt respectivel

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answerhappygod
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There is a firm, which we have identified to buy. It has $100 million, $30 and $70 m assets, equity and debt respectivel

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There is a firm, which we have identified to buy. It has $100
million, $30 and $70 m assets, equity and debt respectively. It
also has $40 m of cash. We want to buy a majority interest in the
firm by using a lot of debt and as little equity as possible on our
part. If we assume that there will be a 20% premium increase once
we start bidding for the firm, how much should we borrow, if we can
use the cash of the target itself to fund our acquisition?
Please resolve WITHOUT Excel. Thank You
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