Question
ACME is an all-stock, no debt firm that has 160,000 shares of stock outstanding. Rudy, the chief financial officer, is thinking about borrowing $275,000 at
ACME is an all-stock, no debt firm that has 160,000 shares of stock outstanding. Rudy, the chief financial officer, is thinking about borrowing $275,000 at 7.45% to repurchase 25,000 shares. Assuming no taxes, what is the presnet market value of the firm?
| $1,220,000 | ||
| $1,620,000 | ||
| $1,760,000 | ||
| $1,860,000 | ||
| $1,480,000 |
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Personal Financial Literacy
Authors: Joan S. Ryan , Christie Ryan
3rd Edition
1337412686,1305980697
