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Assume that the company pursues a financial strategy to buy back 10% of its shares outstanding at the current stock price. You can assume that

Assume that the company pursues a financial strategy to buy back 10% of its shares outstanding at the current stock price. You can assume that the company issues debt to complete the share repurchase. The pre-tax cost of debt is 5%. The tax rate is 21%. Will this corporate finance strategy create value? Briefly explain why or why not? Show all your detailed computations to receive full credit

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