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A firm has 100,000 shares of stock outstanding. The firm is considering borrowing $13 million at 7.5% interest and using the loan proceeds to repurchase

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A firm has 100,000 shares of stock outstanding. The firm is considering borrowing $13 million at 7.5% interest and using the loan proceeds to repurchase 10,000 shares of stock. What is the value of the firm? Ignore taxes. $52.0 million $59.8 million $130.0 million $13.0 million

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