Question
KMS corporation has assets of $750 million, $75 million of which are cash. It has debt of $187.5 million. If KMS repurchases $37.5 million of
KMS corporation has assets of $750 million, $75 million of which are cash. It has debt of $187.5 million. If KMS repurchases $37.5 million of its stock:
a. What changes will occur on its balance sheet?
b. What will be its new leverage ratio?
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Healthcare Finance An Introduction To Accounting And Financial Management
Authors: Louis Gapenski
1st Edition
1567930905, 978-1567930900
