Ignore taxes how many shares will the firm repurchase if it


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

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Finance Basics: Ignore taxes how many shares will the firm repurchase if it
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