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Continue from the previous question. Assume no taxes, no bankruptcy costs. Company U has no debt outstanding. The market value is 453371, earnings before interest
Continue from the previous question. Assume no taxes, no bankruptcy costs. Company U has no debt outstanding. The market value is 453371, earnings before interest and taxes (EBIT) is 57399 and the share price is 50.. Company U is considering a 234409 debt issue with a 6% interest rate (the proceeds are used to buy back the shares). How many shares will be bought back? Continue from the previous question. Assume no taxes, no bankruptcy costs. Company U has no debt outstanding. The market value is 453371, earnings before interest and taxes (EBIT) is 57399 and the share price is 50.. Company U is considering a 234409 debt issue with a 6% interest rate (the proceeds are used to buy back the shares). How many shares will be bought back
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Capital Budgeting
Authors: Pamela P. Peterson
1st Edition
0471218332, 9780471218333
