A firm has 100000 shares of stock outstanding the firm is


A firm has 100,000 shares of stock outstanding. The firm is considering borrowing $1.3 million at 7.5% interest and using the loan proceeds to repurchase 20,000 shares of stock. What is the value of the firm? Ignore Taxes.  

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Financial Management: A firm has 100000 shares of stock outstanding the firm is
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