Question
In a M&M world without taxes, a company issues debt to repurchase some of its own stocks. If the company pays a premium to buy
In a M&M world without taxes, a company issues debt to repurchase some of its own stocks. If the company pays a premium to buy back the stocks, the stock price after repurchase is likely to be _____________ the stock price before the debt issue.
A) the same
B) higher than
C) lower than.
D) independent of.
E) None of the above.
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