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The Greenbriar is an all-equity firm with a total market value of $575,000 and 22,500 shares of stock outstanding. Management is considering issuing $185,000 of
The Greenbriar is an all-equity firm with a total market value of $575,000 and 22,500 shares of stock outstanding. Management is considering issuing $185,000 of debt at an interest rate of 7 percent and using the proceeds on a stock repurchase. Ignore taxes. How many shares will the firm repurchase if it issues the debt securities? Multiple Choice 8,775 shares 507 shares 7,239 shares 8.043 shares 40,250 shares
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