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Baruk Industries has no cash and a debt obligation of $32 million that is now due. The market value of Baruk's assets is $83 million,
Baruk Industries has no cash and a debt obligation of $32 million that is now due. The market value of Baruk's assets is $83 million, and the firm has no other liabilities. Assume perfect capital markets. a. Suppose Baruk has 11 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 11 million shares outstanding. What is Baruk's current share price? If Baruk has 11 million shares outstanding, the current share price (Round to the nearest cent.) b. How many new shares must Baruk issue to raise the capital needed to pay its debt obligation? The number of new shares ismillion. (Round to one decimal place.) c. After repaying the debt, what will Baruk's share price be? After repaying the debt, the share pricesoud to the nearest cent.)
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