Question
A firm has assets of $250 million, of which $25 million is cash. It has total debt of $100 million (there are no other liabilities).
A firm has assets of $250 million, of which $25 million is cash. It has total debt of $100 million (there are no other liabilities). If the firm were to repurchase $10 million of its stock with cash, what would its new debt-to-equity ratio be? A. 71.4% B. 28.6% C. 80% D. 20%
which option is correct?
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Essentials Of Real Estate Finance
Authors: Doris Barrell
15th Edition
1475462077, 978-1475462074
