What is the lowest price rally can offer

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?Rally, Inc., is an? all-equity firm with assets worth $30 billion and 13 billion shares outstanding. Rally plans to borrow $10 billion and use funds to repurchase shares.?Rally's corporate tax rate is 35%, and Rally plans to keep its outstanding debt equal to $10 billion permanently. a. Without the increase in? leverage, what would be? Rally's share? price? b. Suppose Rally offers $2.43 per share to repurchase its shares. Would shareholders sell for this? price? c. Suppose Rally offers $2.70 per? share, and shareholders tender their shares at this price. What will be? Rally's share price after the? repurchase? d. What is the lowest price Rally can offer and have shareholders tender their? shares? What will be its stock price after the share repurchase in that? case?

Reference no: EM131911642

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