Multiple Choice
MDM has a D/E ratio of.5, a P/E of 10, and $50,000 in outstanding debt. The debt is selling at par and the shares of stock are selling at $25 a share. How many shares of stock will be outstanding after MDM completes a $25,000 share repurchase program?
A) 1,000
B) 2,500
C) 3,000
D) 4,000
E) 4,500
Correct Answer:
Verified
Correct Answer:
Verified
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