Multiple Choice
Pewter & Glass is an all equity firm that has 80,000 shares of stock outstanding.The company is in the process of borrowing $600,000 at 9 percent interest to repurchase 12,000 shares of the outstanding stock.What is the value of this firm if you ignore taxes?
A) $2.5 million
B) $4.0 million
C) $5.0 million
D) $5.5 million
E) $6.0 million
Correct Answer:
Verified
Correct Answer:
Verified
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