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Katz is an all - equity development company that has 5 2 , 0 0 0 shares of stock outstanding at a market price of
Katz is an allequity development company that has shares of stock outstanding at a market price of $ a share. The firm's earnings before interest and taxes are $ Katz has decided to issue $ of debt at a rate of percent and use the proceeds to repurchase shares. What should Leslie do if she owns shares of Katz stock and wants to use homemade leverage to offset the leverage being assumed by the firm?
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