Solution-Find shares of deltona, Deltona, USA is a

Find shares of deltona

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Deltona, USA is a development company that currently is financed with 100 percent equity. There are 15,000 shares outstanding at a market price of $50 a share. Deltona has earnings before interest and taxes (EBIT) of $20,000. The firm has decided to issue $250,000 of debt at a rate of 8 percent and use the proceeds to repurchase shares. Theresa owns 500 shares of Deltona and wants to use homemade leverage to offset the leverage used by Deltona. Theresa should?

Reference no: EM133112095

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Find shares of deltona : Deltona, USA is a development company that currently is financed with 100 percent equity. There are 15,000 shares outstanding at a market price of $50 a share.

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Find shares of deltona

Reference no: EM133112095

Reference no: EM133112095

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