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CPK is planning to issue $12,000 of debt with a coupon rate of 8 percent, and use the proceeds to repurchase its shares. CFK's share

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CPK is planning to issue $12,000 of debt with a coupon rate of 8 percent, and use the proceeds to repurchase its shares. CFK's share price is $10/share before the announcement. Current total number of shares outstanding is 6000. The tax rate is 34 percent. How many shares will be repurchased? Ignore bankruptcy costs

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