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ABC Stores is an all-equity firm with 30,000 shares outstanding. The value of each share is $25. The firm is issuing $20,000 of debt and
ABC Stores is an all-equity firm with 30,000 shares outstanding. The value of each share is $25. The firm is issuing $20,000 of debt and using the proceeds to reduce the number of outstanding shares. How many shares of stock will be outstanding once the debt is issued? Ignore taxes.
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