(continue 1) Now assume the stock price is $20 before the debt issuance, and only $1,000,000 of.08...

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(continue 1)

Now assume the stock price is $20 before the debt issuance, and only $1,000,000 of.08 debt can be issued

a. What is the projected stock price after debt issuance in substitution for stock 7? Assume 50,000 shares can be purchased (at a price of$20).

b. Any conclusions?

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The Capital Structure Decision

ISBN: 9781402072994

1st Edition

Authors: Harold Bierman

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Question Posted: Jun 10, 2024 02:04 AM

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(continue 3). What would be the new EPS after debt issuance?
(continue 1) What will be the new EPS after debt issuance?
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(continue 1) Now assume the stock price is $20 before the debt issuance, and only $1,000,000 of.08...

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The Capital Structure Decision

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