Please Need Answer The Green Briar is an all-equity firm with atotal market value of $418,000 and 20,000shares of stock outstanding. Management isconsidering issuing $120,000 of debt at aninterest rate of 9 percent and using theproceeds on a stock repurchase. Ignoretaxes. How many shares will the firmrepurchase if it issues the debt securities?A. 2,871 sharesB. 3,516 sharesC. 3,921 sharesD. 4,607 sharesE. 5,742 shares

Step 1: The calculation of the shares repurchased AB1Total market value $418,0002Shares…

Answered: The Green Briar is an all-equity firm…

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter15: Dividend Policy

Section: Chapter Questions

Problem 11P

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ed A company has the following balance sheet (market values): Liabilities + Equity Debt Equity Assets Cash Operating Assets 600 1000 400 1200 If the firm has 300, find its fair share price after it repurchases 100 worth of shares: (round your answer to the nearest 0.01)
You are given the following information for Golden Fleece Financial: Long-term debt outstanding: Current yield to maturity (rdebt) : Number of shares of common stock: Price per share: Book value per share: Expected rate of return on stock (requity : Cost of capital $ 450,000 % 8% 17,500 $ 50.50 Calculate Golden Fleece's company cost of capital. Note: Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places. $29 15%
The Greenbriar is an all-equity firm with a total market value of $551,000 and 21,700 shares of stock outstanding. Management is considering issuing $153,000 of debt at an interest rate of 9 percent and using the proceeds on a stock repurchase. Ignore taxes. How many shares will the firm repurchase if it issues the debt securities? Multiple Choice • 49,590 shares • 542 shares 6,026 shares 6,695 shares 7,304 shares
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Note:- You are attempting question 2 out of 12 Using the following information calculate the WACC of Aqua Ltd. The company has 0.3 million shares outstanding at a price of $92 per share. The beta of common stock of is 1.2. The risk-free rate is 5% and the market risk premium is 7%. The company issued 11% preference shares with a total value of $ 25 million. The company issued 9% bonds of $33.6 million. The company pays corporate tax at 40 percent. A. 9.59% B. 9.89% С. 10.99% D. d.8.35% A Answer D
Assume JUP has debt with a book value of $22 million, trading at 120% of par value. The firm has book equity of $25 million, and 2 million shares trading at $18 per share. What weights should JUP use in calculating its WACC? ..... A. 33.85% for debt, 66.15% for equity B. 29.62% for debt, 70.38% for equity C. 42.31% for debt, 57.69% for equity D. 38.08% for debt, 61.92% for equity
a) “A stock repurchase carries information content”. What type ofinformation has been referred to in this statement? What impact islikely to have on the stock price of a firm? (Max 50 words)b) The Olive Vase has 56,000 shares of stock outstanding with a par valueof $1 per share and a market value of $11 a share. The company justannounced a 3-for-4 reverse stock split. Currently, you own 500 sharesof this stock. What is the total value of your stock? What will thetotal value of your shares be after the reverse stock split?
The following table presents information for Golden Fleece Financial. Long-term debt outstanding Current yield to maturity on debt Number of shares of common stock Price per share Book value per share Expected rate of return on stock Cost of capital $470,000 % $ $ 9.00% Calculate the company cost of capital. (Ignore taxes. Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) 18,500 67 42 18.00%
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