How do I determine how much bonds or stocks to issue?

I am working on a project for my financial mgmt course. I chose Merck and Co Inc as a company I will research. The company I want to acquire (Wyeth) will cost me about 36 billion dollars. Lets say the board of directors have approved the acquisition and Wyeth is ok’ing the deal. How do I determine if I should issue bonds, stocks or both in order to finance this acqusition? Is there a simple calculation I can use to determine how much debt-bonds, stock, both to issue to finance this acqusition? I am not sure if I need to consider Merck’s preferred or common stock. I’m just not sure how to come up with the funds necessary to buy this company. Can you provide me with a simple example?

There really isnt an easy way to do it. Figure out the combination of debt and equity that gives the lowest weighted average cost of capital and then figure out if the company has the operating cash flow to service the debt.

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