Question
Southwest Sands currently has 23,000 shares of stock outstanding. It is considering issuing $134,000 of debt at an interest rate of 7.5 percent. The break-even
Southwest Sands currently has 23,000 shares of stock outstanding. It is considering issuing $134,000 of debt at an interest rate of 7.5 percent. The break-even level of EBIT between these two capital structure options is $76,000. How many shares of stock will be repurchased if the company undergoes the recapitalization? Ignore taxes.
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Foundations of Finance The Logic and Practice of Financial Management
Authors: Arthur J. Keown, John D. Martin, J. William Petty
8th edition
132994879, 978-0132994873
