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Assume that WyoOne Corp. recently moved to its optimal capital structure by issuing $ 4 , 0 0 0 mn additional debt and this move
Assume that WyoOne Corp. recently moved to its optimal capital structure by issuing $mn additional debt and this move resulted in an increase of $mn in firm value. There are mn shares outstanding and the current stock price is $ WyoOne corp. intends to buy back shares with the proceeds from debt. Use this information to answer the following questions.
At what buyback price would shareholders be indifferent between selling shares back and holding on to them?
If WyoOne Corp. announces a share buyback program at $ per share, how many shares in millions can the company buyback?
If WyoOne Corp. announces a share buyback program at $ how many shares in millions will be remaining after the buyback?
If WyoOne Corp. announces a share buyback program at $ per share, what is the dollar amount of premium in millions paid to selling shareholders?
If WyoOne Corp. announces a share buyback program at $ per share, what is the dollar value in millions accruing to remaining shareholders?
If WyoOne Corp. announces a share buyback program at $ what is the expected share price postbuyback?
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