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Let's go back to the Double-R Nutting Company. Suppose that Double-R's bonds have a face value of $66. Its current market value balance sheet is:

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Let's go back to the Double-R Nutting Company. Suppose that Double-R's bonds have a face value of $66. Its current market value balance sheet is: $ 105 Net working capital Fixed assets Total assets Book-Value Balance Sheet $ 100 Bonds outstanding 90 Common stock $ 190 Total liabilities and shareholders' equity 85 $ 190 Who would gain or lose from the following maneuvers? a. Double-R pays a cash dividend of $90. Stockholders Bondholders b. Double-halts operations, sells its fixed assets for $22, and converts networking capital into $100 cash. It invests its $122 in Treasury bills. Stockholders Bondholders c. Double-Rencounters an investment opportunity requiring an initial Investment of $90 with NPV - $0. It borrows $90 to finance the project by issuing more bonds with the same security, seniority, and so on, as the existing bonds. Stockholders Bondholders b. Double-R halts operations, sells its fixed assets for $22, and converts net working capital into $100 cash. It invests its $122 in Treasury bills. Stockholders Bondholders c. Double-Rencounters an investment opportunity requiring an initial investment of $90 with NPV - $0. It borrows $90 to finance the project by issuing more bonds with the same security, seniority, and so on, as the existing bonds. Stockholders Bondholders d. Double-R finances the investment opportunity in part (c) by issuing more common stock, Stockholders Bondholders

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