Question
An all-equity firm has 1 million shares currently priced at $76 per share. The firm is considering issuing $28 million of permanent debt and using
An all-equity firm has 1 million shares currently priced at $76 per share. The firm is considering issuing $28 million of permanent debt and using the proceeds to repurchase shares. The tax rate is 21%. What will be the total market value of the equity in millions after the debt is issued and the shares are repurchased?
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Introduction To Corporate Finance
Authors: Laurence Booth, Sean Cleary
3rd Edition
978-1118300763, 1118300769
