How many shares firm repurchase for issues debt securities


The Green Briar is the all-equity firm with the total market value of $418,000 and 20,000 shares of stock outstanding. Management is thinking of issuing $120,000 of debt at the interest rate of 9% and using proceeds on the stock repurchase. Ignore taxes. How many shares will firm repurchase if it issues debt securities?

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Mathematics: How many shares firm repurchase for issues debt securities
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