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Rally, Inc., is an all-equity firm with assets worth $25 billion and 10 billion shares outstanding. Rally plans to borrow $10 billion and te funds

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Rally, Inc., is an all-equity firm with assets worth $25 billion and 10 billion shares outstanding. Rally plans to borrow $10 billion and te funds to ropurchase shares. Rally's corporate tax rate is 21%, and Rally plans to keep its outstanding debt equal to $10 billion permanently a. Without the increase in leverage, what would be Rally's share price? b. Suppose Rally offers $2.75 per share to repurchase its shares. Would shareholders sell for this price? c. Suppose Rally offers $3.00 por share, and shareholders tender their shares at this price. What will be Rally's share price after the repurchase? d. What is the lowest price Rally can offer and have shareholders tender their shares? What will be its stock price after the share repurchase in that case? a. Without the increase in leverage, what would be Rally's share price? Without the increase in leverage, Rallys share price is $ (Round to the nearest cent.) b. Suppose Rally offers $2.75 per share to ropurchase its shares. Would shareholders soit for this price? (Select from the drop-down menu.) The minimum share price they would sell for is $(Round to the nearest cent.) c. Suppose Rally offers $3,00 por share and shareholders tender their shares at this price. What will be Ralys share price after the ropurchase ? It Rally offers $3.00 por share, and shareholders tonder their shares at this prico, the share price after the repurchase will be 5. (Round to the nearest cont.) d. What is the lowest price Rally can offer and have shareholders fonder their shares? What will be its stock price after the share repurchase in that caso? The lowest offer per share is $(Round to the nearest cent) The stock price after repurchase is $(Round to the nearest cent)

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