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Business, 06.07.2019 02:10 angelearlyp9ynm9

Suppose alpha industries and omega technology have identical assets that generate identical cash flows. alpha industries is an all-equity firm, with 10 million shares outstanding that tradefor a price of$22 per share. omega technology has 20 million shares outstanding as well as debt of $60 million. a. according to mm proposition i, what is the stock price for omega technology? b. suppose omega technology stock currently trades for $11 per share. what arbitrage opportunity is available? what assumptions are necessary to exploit this opportunity?

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