Essentials Of Investments
11th Edition
ISBN: 9781260013924
Author: Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher: Mcgraw-hill Education,
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A firm has no debt outstanding and a total market value of $786,590. Earnings before interest and taxes, EBIT, are projected to be $74, 500. The company is considering a $30,940 debt issue with an interest rate of 8%. The proceeds will be used to repurchase shares of stock. There are currently 33,050 shares outstanding. Ignore taxes for this problem. How many shares were repurchased under this plan?
A) 1235
B)1170
C) 1105
D)1365
E) 1300
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