Question: In 2012 Intel Corporation had a market capitalization of 121
In 2012, Intel Corporation had a market capitalization of $121 billion, debt of $7.2 billion, cash of $14.7 billion, and EBIT of nearly $18 billion. If Intel were to increase its debt by $1 billion and use the cash for a share repurchase, which market imperfections would be most relevant for understanding the consequence for Intel’s value? Why?
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