Tea Blending Specialists has no debt outstanding and a total market value of $349,680. Earnings before interest and taxes, EBIT, are projected to be $33,690. The company is considering a $46,530 debt issue with an interest rate of 7%. The proceeds will be used to repurchase shares of stock. There are cur atly 18,600 shares outstanding. Ignore taxes for this problem. How many shares were repurchased under this plan?

Tea Blending Specialists has no debt outstanding and a total market value of $349,680. Earnings before interest and taxes, EBIT, are projected to be $33,690. The company is considering a $46,530 debt issue with an interest rate of 7%. The proceeds will be used to repurchase shares of stock. There are cur atly 18,600 shares outstanding. Ignore taxes for this problem. How many shares were repurchased under this plan?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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