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Uptown Interior Designs Is an All Equity fiRm That Has

Question 54

Multiple Choice

Uptown Interior Designs is an all equity firm that has 40,000 shares outstanding.The company has decided to borrow €1 million to buy out the shares of a deceased equityholder who holds 2,500 shares.What is the total value of this firm
If you ignore taxes?


A) €15.5 million
B) €15.6 million
C) €16.0 million
D) €16.8 million
E) €17.2 million

Correct Answer:

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