The new value of the firm be after you complete repurchase

Assignment Help Financial Management

Reference no: EM132040659

Your firm currently has 50 million shares of stock outstanding with each trading at $44.21 per share. As the CFO, you have decided to issue $442 million in perpetual debt that you will use to repurchase shares. Given that you face a corporate tax rate of 37%, what will the new value of the firm be after you complete the repurchase?

Express your answer in millions of dollars rounded to two decimal places (e.g. 5.25 not 5250000)

Reference no: EM132040659

Questions Cloud

How the mistake causes business communication problems : Research common subject line mistakes online and write one paragraph for each common mistake (3 paragraphs total). Be sure to cite the url(s).

Identify one ethical implication of this practice : Explain the relationship between an organization's ability to effectively use information technology and its ability to meet its corporate strategic goals.

Compute the issue price on january : James Corporation is planning to issue $500,000 worth of 6 percent bonds that mature in 10 years. Compute the issue price on January

Brief plan on how that company could improve : Choose a business, either one you work at or a local one, and come up with a brief plan on how that company could improve it's sustainability

The new value of the firm be after you complete repurchase : Given that you face a corporate tax rate of 37%, what will the new value of the firm be after you complete the repurchase?

Define necessary staff training for the organization : Assess the main problem or issue from the case, then create a brief intervention summary for the organization in the case you chose.

Prepare the journal entry to record the annual depreciation : Prepare the journal entry to record the annual depreciation for the year ended December 31, 2014 and any prior period adjustments which may be necessary

What is the current state of public service workers : What is the current state of public service workers? Are public service personnel treated well, poorly, too well, etc.?

Which security should have the higher expected return : Which security has more total risk? Explain why. Which security should have the higher expected return? Explain why.

User Account

All Pages