should be a good trade, page-137

- I understand market cap defined as:

share price x no. of shares.

Therefore debt is not related. In your example, debt to equity is improved via the issue of shares, or in our case a debt to equity swap. Market cap is related here because of the increased issued shares, not debt. Apart from this market cap is not related.

- The earnings dilution, effectively the no. of shares issued, must be the same when comparing historical prices to current prices when assessing value.

- Same case for volume. Comparing volume traded pre and post re-cap means little, there's more volume traded now simply because there are more shares on issue.