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Fiesta Foundations, Inc. (FF) is a zero-growth company that currently has zero debt, and it has the data shown below Now the company is considering

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Fiesta Foundations, Inc. (FF) is a zero-growth company that currently has zero debt, and it has the data shown below Now the company is considering using some debt, moving to the market value capital structure indicated below The money raised would be used to repurchase stock. It is estimated that the increase in risk resulting from the additional leverage would cause the required rate of return on equity to rise somewhat, as indicated below EBIT Growth Oxig cost of equity,& New cost ofequity"h= Tax rate $90,00New DebWalue 10.0%No, of shares- 11.0%price per share = 20% 80% 10,000 $48.00 70% 0%New Equity/Value- 40%Interest rate 14 What is the stock price per share immediately after issuing the debt but prior to the repurchase? $ 48.85 5 53 57 45 45 51.61 $ 56.02

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