Question: Test: Midt... Question 19 of 22 This test: 28 point(s) possible This question: 4 point(s)possible Submit test Rally, Inc. is an all-equity firm with assets

 Test: Midt... Question 19 of 22 This test: 28 point(s) possible

Test: Midt... Question 19 of 22 This test: 28 point(s) possible This question: 4 point(s)possible Submit test Rally, Inc. is an all-equity firm with assets worth 532 billion and 15 billion shares outstanding Rally plans to borrow $16 billion and use funds to repurchase shares Rally's corporate tax rate is 21%, and Rally plans to keep its outstanding debt equal to $16 billion permanently a. Without the increase in leverago, what would be Rally's share price? b. Suppose Rally offers 52.14 per share to repurchase its shares Would shareholders sell for this price? c. Suppose Rally offers $2.47 per share, and shareholders tender their shares at this price. What will be Rally's share price after the repurchase? d. What is the lowest price Rally can offer and have shareholders tonder their shares? What will be s stock price after the share repurchase in that case? pple? Lr alt om a. Without the increase in leverage, what would be Rally's share price? Without the increase in leverage. Rally's share price in SL Round to the nearest cent) Wb. Suppose Rally offers 52 14 por share to repurchase its shares. Would shareholders seit for this price? ir (Select from the drop-down menu its The minimum share price they would sell for Is $. (Round to the nearest cent) he c. Suppose Rally offers $247 per share and shareholders tender their shares at this price What will be Rally's share prin after the repurchase? Rolly offers $2.47 per share and shareholders fonder their shares at this price the share price after the repurchase will be $Round to the nearest cont) d. What is the lowest price Rally can offer and have shareholders tender their shares? What will be its stock price after the share repurchase in that case? The lowest offer per share is (Round to the nearest cent) eidsplass gi bort siner til jul KJP HER MO LEUTE O Time Remaining! 01:06 28 Next Test: Midt... Question 19 of 22 This test: 28 point(s) possible This question: 4 point(s)possible Submit test Rally, Inc. is an all-equity firm with assets worth 532 billion and 15 billion shares outstanding Rally plans to borrow $16 billion and use funds to repurchase shares Rally's corporate tax rate is 21%, and Rally plans to keep its outstanding debt equal to $16 billion permanently a. Without the increase in leverago, what would be Rally's share price? b. Suppose Rally offers 52.14 per share to repurchase its shares Would shareholders sell for this price? c. Suppose Rally offers $2.47 per share, and shareholders tender their shares at this price. What will be Rally's share price after the repurchase? d. What is the lowest price Rally can offer and have shareholders tonder their shares? What will be s stock price after the share repurchase in that case? pple? Lr alt om a. Without the increase in leverage, what would be Rally's share price? Without the increase in leverage. Rally's share price in SL Round to the nearest cent) Wb. Suppose Rally offers 52 14 por share to repurchase its shares. Would shareholders seit for this price? ir (Select from the drop-down menu its The minimum share price they would sell for Is $. (Round to the nearest cent) he c. Suppose Rally offers $247 per share and shareholders tender their shares at this price What will be Rally's share prin after the repurchase? Rolly offers $2.47 per share and shareholders fonder their shares at this price the share price after the repurchase will be $Round to the nearest cont) d. What is the lowest price Rally can offer and have shareholders tender their shares? What will be its stock price after the share repurchase in that case? The lowest offer per share is (Round to the nearest cent) eidsplass gi bort siner til jul KJP HER MO LEUTE O Time Remaining! 01:06 28 Next

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