Taunton's is an all-equity firm that has 157,000 shares of stock outstanding. The CFO is considering borrowing $305,000 at 7 percent interest to repurchase 26,000 shares. Ignoring taxes, what is the value of the firm? Multiple Choice $1,841,731 $1,929,432 $2,266,746 $2,380,083 $2,104,835
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Taunton's is an all-equity firm that has 157,000 shares of stock outstanding. The CFO is considering borrowing $305,000 at 7 percent interest to repurchase 26,000 shares. Ignoring taxes, what is the value of the firm?
Multiple Choice
-
$1,841,731
-
$1,929,432
-
$2,266,746
-
$2,380,083
-
$2,104,835
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