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Business, 06.05.2021 19:40 egr1387

An unlevered firm has a total market value of $25,500,000 and 600,000 shares of stock outstanding. The firm has expected EBIT of $1,520,000 if the economy is normal and $2,610,000 if the economy booms. The firm is considering a $5,400,000 bond issue with an attached interest rate of 6 percent. The bond proceeds will be used to repurchase shares. Ignore taxes. What will the earnings per share be after the repurchase if the economy booms

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An unlevered firm has a total market value of $25,500,000 and 600,000 shares of stock outstanding. T...
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