Question: Tristar Inc. is considering changing from its original capital structure to a new capital structure that results in a stock price of $70 per share.

Tristar Inc. is considering changing from its original capital structure to a new capital structure that results in a stock price of $70 per share. The resulting capital structure would have a $455,000 total market value of equity and $504,000 market value of debt. If the company had 10,500 shares outstanding before the recapitalization, how many shares would Tristar repurchase? A) 4.750 B) 4,250 C) 4,000 D) 5,500 E) 5,000
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