Recife inc has debt-to-assets ratio of 35 tax rate of 40


Recife Inc. has debt-to-assets ratio of 35%, tax rate of 40%, and total value of $200 million. William J. Recife, the CFO, would like to increase the leverage ratio to 39%, and he believes that there will be no change in the bankruptcy cost of the company. How many dollars’ worth of 11% coupon bonds should the company sell, and buy back its own stock, to accomplish the financial restructuring?

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Financial Management: Recife inc has debt-to-assets ratio of 35 tax rate of 40
Reference No:- TGS01233094

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