Solutions for a,b,c,d (all apart of one question)

Rally. In an all-equity firm with assets worth $33 billion and 15 billion shares outstanding. Rally plans to borrow $8 billion and use funds to repurchase shares, Rally corporate tax rate is 25%, and Rally plans to keep its outstanding debt equal to $8 billion permanently a. Without the increase in leverage, what would be Rally's share price? b. Suppose Rally offers 32.10 per share to repurchase its shares Would shareholders sell for this price? o. Suppose Rally offers $280 per 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 Raly can offer and have shareholders tender their shares? What will be its stock price after the share repurchase in that case? 2. Without the increase in leverage, what would be Rally's share price? without the increase in lover Rally's share price is II(Round to the nearest cent) Rally. In an all-equity firm with assets worth $33 billion and 15 billion shares outstanding. Rally plans to borrow $8 billion and use funds to repurchase shares, Rally corporate tax rate is 25%, and Rally plans to keep its outstanding debt equal to $8 billion permanently a. Without the increase in leverage, what would be Rally's share price? b. Suppose Rally offers 32.10 per share to repurchase its shares Would shareholders sell for this price? o. Suppose Rally offers $280 per 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 Raly can offer and have shareholders tender their shares? What will be its stock price after the share repurchase in that case? 2. Without the increase in leverage, what would be Rally's share price? without the increase in lover Rally's share price is II(Round to the nearest cent)