Corp. is an all-equity firm with 50 shares outstanding, selling at $20/share. To capture the tax benefit of debt, Orange plans to sell bonds with a face value of 269 and use the proceeds to repurchase shares in the market. If the corporate tax rate is 20%, what would be the stock price after the bond issuance?

Answer rating: 100% (QA)

Bond proceeds Bond face value 269 Interest rate 0 since its an allequity firm Maturity not relevan... View the full answer