Question: indicate whether the statement is true, false or uncertain, and justify your answer. Unjustified responses will receive a grade of zero. (d) An unlevered firm

indicate whether the statement is true, false or uncertain, and justify your answer. Unjustified responses will receive a grade of zero. (d) An unlevered firm has 160 shares outstanding. The firm decides to issue \$ \\$ 800 \$ in debt and return the proceeds to shareholders via a share buyback. The debt is riskless, and the firm expects to have the same amount of debt in perpetuity. The interest rate is \5 and the corporate tax rate is \20. Statement: After the transaction is completed, the price-per-share will have decreased by \$ \\$ 2.0 \$

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