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What is the market value of? kurz''s existing

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Kurz Manufacturing is currently an? all-equity firm with 22 million shares outstanding and a stock price of $15.00 per share. Although investors currently expect Kurz to remain an? all-equity firm, Kurz plans to announce that it will borrow $37 million and use the funds to repurchase shares. Kurz will pay interest only on this? debt, and it has no further plans to increase or decrease the amount of debt. Kurz is subject to a 21% corporate tax rate.  

a. What is the market value of? Kurz's existing assets before the? announcement?

The market value of? Kurz's existing assets before the announcement is ?$................ million. ? (Round to one decimal? place.)

b. What is the market value of? Kurz's assets? (including any tax? shields) just after the debt is? issued, but before the shares are? repurchased?

The market value of? Kurz's assets? (including any tax? shields) just after the debt is? issued, but before the shares are repurchased is ?$................ million.  ?(Round to one decimal? place.)

c. What is? Kurz's share price just before the share? repurchase? How many shares will Kurz? repurchase?
?Kurz's share price just before the share repurchase is ?$............... ? (Round to the nearest? cent.)

The number of shares that Kurz will repurchase is ...............million. ? (Round to two decimal? places.)

d. What are? Kurz's market value balance? sheet, and share price after the share? repurchase?

The market value of assets is ?$................million.  ?(Round to one decimal? place.)

The debt is ?$..............million. ? (Round to the nearest? integer.)

The market value of equity is ?$..................million.  ?(Round to one decimal? place.)

Share price after repurchase is ?$................ ?(Round to two decimal places?.)

Reference no: EM132551204

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