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Shari s Sneakers has $ 1 0 0 , 0 0 0 of perpetual debt which trades at par and has a coupon rate of
Sharis Sneakers has $ of perpetual debt which trades at par and has a coupon rate of The firm has shares of stock each priced at $ The firm has decided that it will issue equity and repurchase $ of debt. The firm faces a tax rate. Assume that the firms announcement about issuing equity to repurchase debt is both credible and a surprise to the market.
After the equity issuance, how many shares of stock will Sharis Sneakers have outstanding please answer to the nearest share. If your answer is shares please enter
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