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a-d please P 16-23 (similar to) E Question Help 5%, and Rany pans to Rally Inc. s an all-equity firm with assets or 25 billion
a-d please
P 16-23 (similar to) E Question Help 5%, and Rany pans to Rally Inc. s an all-equity firm with assets or 25 billion and 10 billion shares outstanding Ra y ans to borrow $13 billion and use funds to repurchase sha es keep its outstanding debt equal to $13 billion permanently a. Without the increase in leverage, what would be Rally's share price? b. Suppose Rally offers $2.73 per share to repurchase its shares. Would shareholders sell for this price? c. Suppose Rally offers $3.19 per share, and shareholders tender their shares at this price. What will be Rally's share price after the repurchase? d. What is the lowest price Rally can offer and have shareholders tender their shares? What will be its stock price after the share repurchase in that case? all sco Dora e tax ra e sStep by Step Solution
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