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The firm is considering selling bonds and simultaneously repurchasing some of its stock. If it moves to a capi structure with 50% debt based on

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The firm is considering selling bonds and simultaneously repurchasing some of its stock. If it moves to a capi structure with 50% debt based on market values, its cost of equity, rs, will increase to 10% to reflect the increased risk. Bonds can be sold at a cost, rd, of 6 Santiago is a no-growth firm. Hence, all its earnings are paid out as dividends. Earnings are expectad to be constant over time. a. With the recapitalization, what is the company's WACC The WACC is \% (Formatted two decimal points inside the field. For example, 1.23) b. What is the value of the firm (V)? V is $ Round to a whole number in this field (no commas). For example, 123456) c. What is the new price of stock per share. The new price per share is $ For example, 18) Round to a whole number in this field, no commas. d. How many shares are repurchased? The new price per share is $ Round to a whole number (no commas). e. What is the EPS after the recapitalization? The EPS after the recapitalization is $ 5.88. Round to two decimal points. For example

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