An unlevered firm with a share price of $80, market value of $8 million, and 100,000...

An unlevered firm with a share price of $80, market value of $8 million, and 100,000 shares outstanding announces that $5 million of perpetual debt will be issued and the proceeds will be used to repurchase an equal value of equity shares. The firm's tax rate is 40%. How many shares will be repurchased?"

50000

62500

40000

60000

45500

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jeff jeffy answered 1 year ago

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