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Digital Fruit is financed solely by common stock and has outstanding 42 million shares with a market price of $15 a announces that it intends

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Digital Fruit is financed solely by common stock and has outstanding 42 million shares with a market price of $15 a announces that it intends to issue $330 million of debt and to use the proceeds to buy back common stock. There are no taxes a. What is the expected market price of the common stock after the announcement? Answer is complete and correct. Market price b. How many shares can the company buy back with the $330 million of new debt that it will issue? (Enter your answer in millions rounded to 1 decimal place.) Answer is complete and correct. The buyback wilha million c. What is the market value of the firm (equity plus deb) after the change in capital structure? (Enter your answer in millionsJ Answer is complete and correct. KPrex 3 of 5E Next

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