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For this problem, all M&M assumptions apply. The tax rate is 40%. After a successful college football career, Tim Turbo partnered with Danny Waffle (naming

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For this problem, all M&M assumptions apply. The tax rate is 40%. After a successful college football career, Tim Turbo partnered with Danny Waffle (naming themselves TD Industries) to manufacture and distribute fruit pies. On 1/1/2020, the company had one product that generated EBIT of $900,000 on 12/31 of each year (forever). The firm had $600,000 in debt outstanding. The debt is perpetual, with an annual coupon payment equal to the risk-free rate. The asset beta is 1.25. The risk-free rate, RF, is 3 percent and the MRP is 5 percent. The firm has 100,000 shares outstanding, and all earnings were (and will always be) paid out as dividends on 12/31 of each year. As you can calculate, using CAPM for equity required returns, the firm had a price / share of $54.7784. On 1/2/2020 at 8:00 a.m., TD announced a new pie product: . The project required the company spend $600,000 to purchase The Buckeye Grinder 2100, a buckeye mashing machine. The machine will not be depreciated or expensed since it will last forever. No working capital is required. The project will increase the company's EBIT by $90,000 a year forever, starting on 12/31/2020 The project had an asset beta of 1.50 TD Industries announced that it will issue new equity and new perpetual debt carrying a 3% coupon paid annually. These two issues will raise $600,000, which will be used to finance the new project. paid annually. These two issues Willia When the market opened at 9:30a, the price changed as expected, increasing to $55.9212 per share. The debt and equity were issued, and the project was implemented as planned. There were X shares outstanding. How many shares were outstanding after the entire project was implemented? Truncate your answer to the nearest whole share, with no punctuation. For example, if there were 115,226.55 shares outstanding, enter"115226". Canvas may add a comma. For this problem, all M&M assumptions apply. The tax rate is 40%. After a successful college football career, Tim Turbo partnered with Danny Waffle (naming themselves TD Industries) to manufacture and distribute fruit pies. On 1/1/2020, the company had one product that generated EBIT of $900,000 on 12/31 of each year (forever). The firm had $600,000 in debt outstanding. The debt is perpetual, with an annual coupon payment equal to the risk-free rate. The asset beta is 1.25. The risk-free rate, RF, is 3 percent and the MRP is 5 percent. The firm has 100,000 shares outstanding, and all earnings were (and will always be) paid out as dividends on 12/31 of each year. As you can calculate, using CAPM for equity required returns, the firm had a price / share of $54.7784. On 1/2/2020 at 8:00 a.m., TD announced a new pie product: . The project required the company spend $600,000 to purchase The Buckeye Grinder 2100, a buckeye mashing machine. The machine will not be depreciated or expensed since it will last forever. No working capital is required. The project will increase the company's EBIT by $90,000 a year forever, starting on 12/31/2020 The project had an asset beta of 1.50 TD Industries announced that it will issue new equity and new perpetual debt carrying a 3% coupon paid annually. These two issues will raise $600,000, which will be used to finance the new project. paid annually. These two issues Willia When the market opened at 9:30a, the price changed as expected, increasing to $55.9212 per share. The debt and equity were issued, and the project was implemented as planned. There were X shares outstanding. How many shares were outstanding after the entire project was implemented? Truncate your answer to the nearest whole share, with no punctuation. For example, if there were 115,226.55 shares outstanding, enter"115226". Canvas may add a comma

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