Multiple Choice
Jensen Boat Works is an all equity firm that has 340,000 shares of stock outstanding. The company is in the process of borrowing $4 million at 8% interest to repurchase 80,000 shares of the
Outstanding stock. What is the value of this firm if you ignore taxes?
A) $15.8 million
B) $16.4 million
C) $17.0 million
D) $17.5 million
E) $18.1 million
Correct Answer:
Verified
Correct Answer:
Verified
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