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please help! Show all work in exceleatly! An all-equity company decides to issue debt to buy back its own shares. All information about the company
please help! Show all work in exceleatly!
An all-equity company decides to issue debt to buy back its own shares. All information about the company is given below. For the following questions, please assume that MM theory holds and that debt will be kept forever. a). What will be the new share price? b). How many shares will be bought track? Old share price Number of shares outstanding old WACC New debt cost of debt Tax rate $40.00 750,000 18% $10,000,000 21% a). What will be the new share price? New Share price b). How many shares will be bought back? Shares repurchased c). What is the company's new WACC? New Equity Debt Total Value DE New cost of equity new WACCStep by Step Solution
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