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Unlevered firm has the following information: 10,000 outstanding shares but it wants to purchase back half with $50K USD perpetual risk-free debt. The risk-free interest
Unlevered firm has the following information:
10,000 outstanding shares but it wants to purchase back half with $50K USD perpetual risk-free debt.
The risk-free interest rate is 6%. What is the Free Cash Flow of this operation, the firm should break even.
a. 500 USD
b. 6,000 USD
c. 1,500 USD
d. 3,000 USD
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