The income tax rate of the company is 30 find the value of


Wilson Company plans to buy back 1 million shares of its own stock from its cash reserves at $75 a share. This will increase the bankruptcy costs by $12 million, and the debt/assets ratio from 36% to 40%. The income tax rate of the company is 30%. Find the value of the stock per share after this buyback. Is the company making the right move?

Request for Solution File

Ask an Expert for Answer!!
Finance Basics: The income tax rate of the company is 30 find the value of
Reference No:- TGS0602025

Expected delivery within 24 Hours