How many shares will the firm repurchase

Reference no: EM13261424

The Green Briar is an all-equity firm with a total market value of $418,000 and 20,000 shares of stock outstanding. Management is considering issuing $120,000 of debt at an interest rate of 9 percent and using the proceeds on a stock repurchase. Ignore taxes. How many shares will the firm repurchase if it issues the debt securities?

A. 2,871 shares
B. 3,516 shares
C. 3,921 shares
D. 4,607 shares
E. 5,742 shares

Reference no: EM13261424

Questions Cloud

What is the maximum value of the blocks velocity : A 6.5- kg block oscillates with an amplitude of 0.100 m on a light spring of constant k = 16.0 N/m. What is the maximum value of the block's velocity

What are the anticipated earnings per share : The projected earnings before interest and taxes are $58,600. What are the anticipated earnings per share if the debt is issued? Ignor taxes.

Explain the mercury levels in the two arms of the manometer : The difference in the mercury levels in the two arms of the manometer was 11.8 cm. Atmospheric pressure was 783 mm Hg. The pressure of the argon in the container was __________ mm Hg.

Find the radius of the circular path in which it will trave : An electron is accelerated through a potential difference of 100 V, Find the radius of the circular path in which it will travel

How many shares will the firm repurchase : Management is considering issuing $120,000 of debt at an interest rate of 9 percent and using the proceeds on a stock repurchase. Ignore taxes. How many shares will the firm repurchase if it issues the debt securities?

Explain the difference in the mercury levels in the two arms : A closed-end manometer was attached to a vessel containing argon. The difference in the mercury levels in the two arms of the manometer was 11.8 cm. Atmospheric pressure was 783 mm Hg. The pressure of the argon in the container was __________ mm H..

Find the speed of the first-order maxima on the screen : A student holds a laser that emits light of wavelength 633nm. The beam passes through a pair of slits separated by 0.3mm, Find the speed of the first-order maxima on the screen

Final critical literature review : The Final Critical Literature Review should demonstrate significant advancement from your Progress Report - avoid the temptation of ‘cutting' and ‘pasting' large quantities of work from your Progress Report.

Explain allowed to contract until the volume : A sample of a gas originally at 29°C and 1.25 atm pressure in a 3.0 L container is allowed to contract until the volume is 2.2 L and the temperature is 11°C.

User Account

All Pages