Find shares can the firm repurchase

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Florence Mills is an all-equity firm with a total market value of $250,000. The firm has 8,000 shares of stock outstanding. Management is considering issuing $50,000 of debt at an interest rate of 7 percent and using the proceeds on a stock repurchase. Ignore taxes. How many shares can the firm repurchase if it issues the debt securities?

Reference no: EM132731533

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