Taunton’s is an all-equity firm that has 160,000 shares of stock outstanding. neal, the financial vice president, is considering borrowing $275,000 at 7.45 percent interest to repurchase 25,000 shares
Taunton’s is an all-equity firm that has 160,000 shares of stock outstanding. neal, the financial vice president, is considering borrowing $275,000 at 7.45 percent interest to repurchase 25,000 shares. ignoring taxes, what is the current value of the firm? a.$1,485,000 b.$1,800,000 c.$1,520,000 d.$1,260,000 e.$1,760,000