Question
Suppose JC Inc, Inc., a profitable pest management firm, has 625 million shares outstanding with a share price of $80, and $25 billion in debt.
-
Suppose JC Inc, Inc., a profitable pest management firm, has 625 million shares outstanding with a share price of $80, and $25 billion in debt. If in three years, JC inc has 800 million shares outstanding trading for $100 per share, how much debt will JC Inc have if it maintains a constant debt-equity ratio (D/E)?
a. $20 billion
b. $4 billion
c. $160 billion
d. $40 billion
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Principles Of Commercial Real Estate Finance
Authors: Gail Ramshaw, Mortgage Bank
1st Edition
0793157099, 9780793157099
