Briefly describe what would happen to the share price if a company issues new debt to repurchase

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Briefly describe what would happen to the share price if a company issues new debt to repurchase some of its equity, assuming there are no market imperfections.

How would your answer differ if the only market imperfection was taxation? Briefly state your reason(s).

Related Book For answer-question

Microeconomics An Intuitive Approach with Calculus

ISBN: 978-0538453257

1st edition

Authors: Thomas Nechyba

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Posted Date: Mar 14, 2023 05:47 AM

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Briefly describe what would happen to the share price if a company issues new debt to repurchase

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1 The share price would rise if a company issued new debt to repurchase some of its equity presuming ... View the full answer

Microeconomics An Intuitive Approach with Calculus

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