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Assume that X is a publicly traded company and has 5 million shares, trading at $20/share, and that it has $50 million in debt. You
Assume that X is a publicly traded company and has 5 million shares, trading at $20/share, and that it has $50 million in debt. You believe that the value of this company will increase by 10% if it borrows $50 million and buys back stock. Assume that the company can buy the shares back at $25/share. What would you expect the remaining shares in the company to trade at, after the buyback?
Group of answer choices
$21.67/share
$21.47/share
$21.57/share
$21.87/share
None of the others
$21.97/share
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