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Your company is considering buying back 10% of its stock. Which advice would you give the company regarding the buyback? Select an answer: If they
Your company is considering buying back 10% of its stock. Which advice would you give the company regarding the buyback? Select an answer: If they buy back the stock, they will reduce their weighted average cost of capital. They should only buy back the stock if they do a bond issue in the same amount. They will be reducing debt and reducing the risk of not being able to make interest payments. They will be adding debt and taking the risk of not being able to make interest payments
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