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Baruk Industries has no cash and a debt obligation of $ 3 9 million that is now due. The market value of Baruk's assets is
Baruk Industries has no cash and a debt obligation of $ million that is now due. The market value of Baruk's assets is
$ million, and the firm has no other liabilities. Assume perfect capital markets.
a Suppose Baruk has million shares outstanding. What is Baruk's current share price?
b How many new shares must Baruk issue to raise the capital needed to pay its debt obligation?
c After repaying the debt, what will Baruk's share price be
a Suppose Baruk has million shares outstanding. What is Baruk's current share price?
If Baruk has million shares outstanding, the current share price is $Round to the nearest cent.
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