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ABC Corp. is a clothing retailer with a current share price of $10.00 and with 25,000,000 shares outstanding. Suppose that ABC announces plans to change
ABC Corp. is a clothing retailer with a current share price of $10.00 and with 25,000,000 shares outstanding.
Suppose that ABC announces plans to change its capital structure by borrowing $100,000,000 and using the proceeds to repurchase shares. Assuming perfect capital markets and semi-strong form market efficiency, the share price for ABC after this announcement is closest to:
ABC Corp. is a clothing retailer with a current share price of $10.00 and with 25,000,000 shares outstanding.
Suppose that ABC announces plans to change its capital structure by borrowing $100,000,000 and using the proceeds to repurchase shares. Assuming perfect capital markets and semi-strong form market efficiency, the share price for ABC after this announcement is closest to:
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