Green Lake Corp. has 10 million shares outstanding with a market price of $25 per share...

Green Lake Corp. has 10 million shares outstanding with a market price of $25 per share and no debt. The company marginal tax rate is 40%. The CFO of Green Lake plans to issue a $100 million debt and use the proceeds to repurchase the outstanding shares. Assume that Green Lake prepares to repurchase the existing shares from the open market at $25 per share. What will the new share price be after the repurchase?

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jeff jeffy answered 1 year ago

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