Multiple Choice
Day 'n Nite currently has 25 000 shares of stock outstanding and no debt.The price per share is $20.The firm is considering borrowing funds at 8 per cent interest and using the proceeds to repurchase 5000 shares of stock.Ignore taxes.How much is the firm borrowing?
A) $180 000
B) $140 000
C) $100 000
D) $165 000
E) $185 000
Correct Answer:
Verified
Correct Answer:
Verified
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