Question: VanMannen Foundations, Inc. (VF) VanMannen Foundations, Inc. (VF) is a zero-growth company that currently has zero debt, and it has the data shown below. EBIT
VanMannen Foundations, Inc. (VF) VanMannen Foundations, Inc. (VF) is a zero-growth company that currently has zero debt, and it has the data shown below. EBIT = $80,000 Growth = 0% Orig cost of equity, rs = No. of shares Price per share = Tax rate = 10.0% 10,000 $60.00 25% Refer to the data for Van Mannen Foundations, Inc. (VF). What would the stock price be if VF issued the new debt and immediately used the proceeds to repurchase stock? a. $66.71 b. $73.68 c. $70.18 d. $65.04 e. $68.42 VanMannen Foundations, Inc. (VF) VanMannen Foundations, Inc. (VF) is a zero-growth company that currently has zero debt, and it has the data shown below. EBIT = $80,000 Growth = 0% Orig cost of equity, rs = No. of shares Price per share = Tax rate = 10.0% 10,000 $60.00 25% Refer to the data for Van Mannen Foundations, Inc. (VF). What would the stock price be if VF issued the new debt and immediately used the proceeds to repurchase stock? a. $66.71 b. $73.68 c. $70.18 d. $65.04 e. $68.42
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