How many shares can the firm repurchase

Reference no: EM13258676

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: EM13258676

Questions Cloud

What is the profitability index of the project : Suppose Conch Republic loses sales on other models because of the introduction of the new model. How would this affect your analysis?

What is the maximum allowable noise at the amplifier output : A temperature transducer has the relationship R=200 + 10T where R is in ohms and T is in Celsius. The problem specifications are: Range is 30=T=50°C Resolution is 0.01°C Frequencies of interest are 0 to 100Hz Transducer dissipation constant is 20 mW..

Security guards at target in tampa : Security guards at Target in Tampa were called to break up a fight in the parking lot. As they approached the two men, one of them, Jack, threw a punch at one of the guards.

Explain a radioactive isotope with a half-life : 32P is a radioactive isotope with a half-life of 14.3 days. If you currently have 49.1 g of 32P, how much 32P was present 7.00 days ago

How many shares can the firm repurchase : using the proceeds on a stock repurchase. Ignore taxes. How many shares can the firm repurchase if it issues the debt securities?

Find the energy absorbed by the element in seconds : the voltage across an element is 12e^-2t V. the current entering the positive terminal of the element is 2e^-2t A. Find the energy absorbed by the element in 1.5 seconds starting from t =0.

Find the gravitional force of attraction between two shells : A uniform thin spherical shell has a raduis of 2.9 m and mass of 460kg and its center is located at the origin of a coordinate system. find the gravitional force of attraction between the two shells

How much equity does have in the house : Homer Simpson bought a house for $70,000 some years ago. Heput 20% down and financed the rest with a 25 year mortgage of 8.5%interest. How much equity does Homer have in the house?

Calculate the required length of shunt resistance : A circuit has a meter shunted by a parallel resistance (rs). With a current of 200 A. The meter can read a max of 1mA and has a residtance of 0.1 ohm. The shunt resistance is 0.0000005000025.

User Account

All Pages