17. Taunton's is an all-equity firm that has 156,500 shares of stock outstanding. The CFO is...
17. Taunton's is an all-equity firm that has 156,500 shares of stock outstanding. The CFO is considering borrowing $299,000 at 6 percent interest to repurchase 25,500 shares. Ignoring taxes, what is the value of the firm?
Homework Answers
Share price = amount borrowed/shares repurchased = 299000/25500=11.72549
Value = share price*share number = 11.72549*156500=1835039.19
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17. Taunton's is an all-equity firm that has 156,500 shares of
stock outstanding. The CFO is...
Taunton's is an all-equity firm that has 150,500 shares of stock outstanding. The CFO Is considering...
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