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Kopes Industries is an all-equity firm with a total market value of $320,000. The firm has 15,000 shares of stock outstanding. Management is considering issuing
Kopes Industries is an all-equity firm with a total market value of $320,000. The firm has 15,000 shares of stock outstanding. Management is considering issuing $100,000 of debt at an interest rate of 8 percent and using the proceeds on a stock repurchase. Ignore taxes. How many shares can the firm repurchase if it issues the debt securities?
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