Multiple Choice
A firm has a total market value of assets of $240 million, of which $24 million is cash. It has debt of $96 million. If the firm were to repurchase $9.6 million of its stock, what would its new debt-to-equity ratio be?
A) 142.86%
B) 71.43%
C) 35.71%
D) 85.71%
Correct Answer:
Verified
Correct Answer:
Verified
Related Questions
Q91: The JRN Corporation will pay a constant
Q92: The way a firm chooses between alternate
Q93: Palo Alto Enterprises has $200,000 in cash.
Q94: Modigliani and Miller Dividend Irrelevance states that
Q95: CCR stock is currently trading at $60.73
Q97: Danroy Inc. has announced a $7 dividend.
Q98: A firm can distribute shares of a
Q99: Omicron Technologies has $50 million in excess
Q100: What is the effect on the stock
Q101: Omicron Technologies has $40 million in excess