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Brown's is an unlevered firm with a total market value of $360,000 and 12,000 shares of stock outstanding. The firm has expected EBIT of $17,500.

Brown's is an unlevered firm with a total market value of $360,000 and 12,000 shares of stock outstanding. The firm has expected EBIT of $17,500. The firm is considering a bond issue of $120,000 with an attached interest rate of 5.9 percent. The bond proceeds will be used to repurchase shares. The tax rate is 30 percent. How many shares will Browns have to repurchase after the announcement? and:3636 show steps

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