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Albemarle corporation, currently an all equity firm with 27,000 million shares outstanding, each worth 10,00, is considering borrowing 46,50 to repurchase some of its stocks.
Albemarle corporation, currently an all equity firm with 27,000 million shares outstanding, each worth 10,00, is considering borrowing 46,50 to repurchase some of its stocks. Once the loan is issued, the corporation plan to maintain its capital structure constant. Albermale is subject to 36,00% corporate tax rate. At what price will Albemarle repurchase its shares?
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