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Suppose that Sigma has decided to issue debt nancing and use the proceeds to purchase some of its shares from the open market. What fraction
Suppose that Sigma has decided to issue debt nancing and use the proceeds to purchase some of its shares from the open market. What fraction of the firm's 993 million shares does the firm need to repurchase to make its interestbearing debt ratio equal to that of ESL? If Sigma had carried out the transaction by issuing bonds with an annual interest rate of 8%, what would its earnings per share have been in 2017
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