Question: APV method indicates that the levered firm is more valuable than the unlevered firm due to the tax benefit of debt. An unlevered firm wants

APV method indicates that the levered firm is more valuable than the unlevered firm due to the tax benefit of debt. An unlevered firm wants to carry out a capital restructuring and change to a levered firm. The restructuring will be done by using borrowed money to repurchase its stock. Which date below would reflect the stock price change due to the restructuring?

	A.	A period after restructuring completion
	B.	Restructuring announcement date
	C.	Somewhere between announcement date and completion date
	D.	Restructuring completion date

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