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Payday Inc.wants to issue $2 million of debt @ 5% to either issue a dividend or complete a share repurchase.The stock is currently trading at

Payday Inc.wants to issue $2 million of debt @ 5% to either issue a dividend or complete a share repurchase.The stock is currently trading at $25 per share and there are 500,000 shares outstanding. The tax rate is 20%.

What would be the new share price if Payday Inc. used the debt to complete a buyback?

What would be the new share price if Payday Inc. issued a dividend?

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