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Wallsburg is going to issue additional shares of stock to pay off debt. The firm has stable cash flows and pays income taxes, so the

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Wallsburg is going to issue additional shares of stock to pay off debt. The firm has stable cash flows and pays income taxes, so the debt reduction and corresponding loss of interest tax shields is a value destroying endeavor. When will stock price decrease based on this transaction? When equity issue/debt reduction is announced When higher taxes are paid in the future When cash is used to pay off debt When new shares of stock are issued

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