Question
Thomson is an all-equity firm that has 300,000 shares of stock outstanding. The company is in the process of issuing 3,000 bonds with a face
Thomson is an all-equity firm that has 300,000 shares of stock outstanding. The company is in the process of issuing 3,000 bonds with a face value of $1,000 per bond that are selling at 80% of par, to repurchase 75,000 shares of the outstanding stock. What is the value of this firm according to MM without taxes?
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Fundamentals Of Corporate Finance
Authors: Stephen Ross, Randolph Westerfield, Bradford Jordan
13th Edition
1265553602, 978-1265553609
