Question
XYZ is an all-equity firm that has 250,000 shares of stock outstanding. The company is considering borrowing $350,000 at 10 percent interest to repurchase 50,000
XYZ is an all-equity firm that has 250,000 shares of stock outstanding. The company is considering borrowing $350,000 at 10 percent interest to repurchase 50,000 shares. Ignoring taxes, what is the value of the firm?
Group of answer choices
$3,500,000
$175,000
$1,750,000
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Finance For Non Financial Managers
Authors: Pierre G. Bergeron
5th Edition
0176104070, 9780176104078
