Multiple Choice
Infinity Completion, Inc.currently has 50,000 shares of stock outstanding and no debt.The price per share is $23.75.The firm is considering borrowing funds at 6 percent interest and using the proceeds to repurchase 5,000 shares of stock.Ignore taxes.How much is the firm borrowing?
A) $138,000
B) $118,750
C) $84,000
D) $1
E) $125,000
Correct Answer:
Verified
Correct Answer:
Verified
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