Hotel cortez is an all-equity firm that has 125000 shares of stock outstanding at a market price of $44.46 per share. the firm's management has decided to issue $8 worth of debt and use the funds to repurchase shares of the outstanding stock. the interest rate on the debt will be 4.2 percent. what is the break-even ebit? ignore taxes.

What is private equity investing? who participates in it and why? how is palamon positioned in the industry? how does private equity investing compare with public market investing? what are the similarities and differences between the two? why is palamon interested in teamsystem? does it fit with palamon’s investment strategy? how much is 51% of teamsystem’s common equity worth? use both a discounted cash flow and a multiple-based valuation to justify your recommendation. what complexities do cross-border deals introduce? what are the specific risks of this deal? what should louis elson recommend to his partners? is it a go or not? if it is a go, what nonprice terms are important? if it’s not a go, what counterproposal would you make?