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Business, 22.10.2020 19:01 Thejollyhellhound20

The Hifalutin Co. has perpetual EBIT of $3,000. It has no debt in its capital structure, and its cost of equity is 15%. The corporate tax rate is 40%. There are 300 shares outstanding. Hifalutin has announced that it will borrow $3,750 in perpetual debt at 8% and use the proceeds to buy up stock. How many shares will be purchased

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The Hifalutin Co. has perpetual EBIT of $3,000. It has no debt in its capital structure, and its cos...
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