Question
An all-equity firm wants to take a loan to buy back 50% of its shares. Assuming a rational buyback price, what is the firm's debt-to-capital
An all-equity firm wants to take a loan to buy back 50% of its shares. Assuming a rational buyback price, what is the firm's debt-to-capital ratio after the buyback?
75%
25%
100%
50%
0%
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Multinational Business Finance
Authors: David K. Eiteman, Arthur I. Stonehill, Michael H. Moffett
15th edition
134796551, 134796550, 978-0134796550
