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thank you Green Goose Issued $2,450,000 in new debt to repurchase its outstanding stock. The firm had no short-term investments before or after the recapitalization.
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Green Goose Issued $2,450,000 in new debt to repurchase its outstanding stock. The firm had no short-term investments before or after the recapitalization. Green Goose had 175,000 shares outstanding before the recapitalization. . Green Goose's capital structure now has 35.00% debt. The company's operations are valued at $7,000,000 before and after the recapitalization Based on the information available, solve for the values in the following table. Click on the dropdown menus and select the best answer. Assume that you are in a Modigliani and Miller (MM Proposition I) world with no taxes. Value Stock price before the repurchase Number of shares repurchased Value of equity post repurchase Based on your findings, you prepared a report containing several inferences. While proofreading, you come across the following inference: Recapitalization might increase the firm's EPS, but the price per share remains the same Based on your findings, you prepared a report containing several Inferences. While proofreading, you come across the following inference: Recapitalization might increase the firm's EPS, but the price per share remains the same. Is the statement true or false? True False Step by Step Solution
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