Question 8 Firm X is an all-equity firm that has 250,000 shares of stock outstanding that...
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Question 8 Firm X is an all-equity firm that has 250,000 shares of stock outstanding that trades at $35.00 per share. The company is borrowing $1.75 million at 5.75 percent interest to repurchase shares of the outstanding stock. Ignoring taxes, what is the value of this firm after it establishes the new capital structure? Question 8 Firm X is an all-equity firm that has 250,000 shares of stock outstanding that trades at $35.00 per share. The company is borrowing $1.75 million at 5.75 percent interest to repurchase shares of the outstanding stock. Ignoring taxes, what is the value of this firm after it establishes the new capital structure?
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