Assume that company A wants to boost its stock price. The company currently has 1 3 million
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Question:
Assume that company A wants to boost its stock price. The company currently has million shares outstanding with a market price of $ per share and no debt. A has had consistently stable earnings, and pays a tax rate. Management plans to borrow $ million on a permanent basis and they will use the borrowed funds to repurchase outstanding shares. If A can repurchase at the current price of $ per share, what will the stock price be after the repurchase keep two decimal places and assume that the new borrowing will not have any negative effects
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