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Wendy's Company currently has $20M in debt outstanding and equity valued at $90M with 12M shares outstanding. The firm pays corporate income tax at
Wendy's Company currently has $20M in debt outstanding and equity valued at $90M with 12M shares outstanding. The firm pays corporate income tax at a rate of 30% and taxes are the only relevant market imperfection. Wendy's has a cost of equity of 9% and cost of debt of 5%. Wendy's decides to repurchase all its debt by issuing new equity, how many shares does Wendy's need to issue?
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Financial Reporting Financial Statement Analysis And Valuation A Strategic Perspective
Authors: James M. Wahlen, Stephen P. Baginski, Mark Bradshaw
9th Edition
1337614689, 1337614688, 9781337668262, 978-1337614689
