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Scuba Pro Inc. is unlevered, is valued at $100,000, and has 5,000 shares outstanding. The company announces that in the near future it will issue
Scuba Pro Inc. is unlevered, is valued at $100,000, and has 5,000 shares outstanding. The company announces that in the near future it will issue $30,000 of debt and buy back $30,000 of stock. Consider the debt to be in perpetuity and have an interest rate of 4%. If the firm is in the 34% tax bracket, how many shares of stock will be purchased
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Foundations In Personal Finance
Authors: Dave Ramsey
1st Edition
0981683967, 978-0981683966
