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8 Warbucks Industries is an all-equity firm with a total market value of $587,000 and 22,900 shares of stock outstanding. Management is considering issuing $201,000
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Warbucks Industries is an all-equity firm with a total market value of $587,000 and 22,900 shares of stock outstanding. Management is considering issuing $201,000 of debt at an interest rate of 6 percent and using the proceeds on a stock repurchase. Ignore taxes. How many shares will the firm repurchase if it issues the debt securities? Multiple Choice 8,713 shares O 7,841 shares 470 shares 9,505 shares 35,220 shares
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