Nero Violins has the following capital structure: Securi…

Nero Violins has the following capital structure: Security Beta Total market value Equity 0 100 Debt 1.6 200 Now assume that Nero decides to issue an additional $100 million of equity and used the cash to repurchase all the debt. Assuming no taxes, and no of costs of financial distress, what is Nero Violins’ new equity after the transaction?