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Happy Corp is unlevered with 7,500 shares outstanding at $3.50 per share. The firm announces that it plans to refinance by issuing perpetual debt worth
Happy Corp is unlevered with 7,500 shares outstanding at $3.50 per share. The firm announces that it plans to refinance by issuing perpetual debt worth $4,000 and using the proceeds to buy back equity. Assume that markets are semi-strong form efficient and the tax rate is 35%. How many shares are left in the firm after the repurchase
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The Complete Guide To Capital Markets For Quantitative Professionals
Authors: Alex Kuznetsov
1st Edition
0071468293, 978-0071468299
