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Remaining Time: 16 minutes, 13 seconds. * Question Completion Status: CY Moving to the next question prevents changes to this answer. Question 8 Question
Remaining Time: 16 minutes, 13 seconds. * Question Completion Status: CY Moving to the next question prevents changes to this answer. Question 8 Question 8 of 22 1 points Save Answer This is a question about homemade leverage. You currently own 600 shares of CITADEL, Inc. CITADEL is an all-equity firm that has 75,000 shares of stock outstanding at a market price of $40 a share. The companys earnings before interest and taxes are $140,000. CITADEL has decided to issue $1 million of debt at 8 percent interest. This debt will be used to repurchase shares of stock. How many shares of CITADEL stock must you sell to unlever your position if you can buy the companys bond at 8 percent interest? Ignore taxes. OA. 180 shares OB. 250 shares OC. 150 shares OD. 200 shares Moving to the next question prevents changes to this answer. Cast of Capit public offer onds OE. 120 shares Foresight ma al becaus company in Fe dept Comparat otissy A W E 4 I R 57610 MacBook Pro > - O 0 Question 8 of 22>
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