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What is the value of firm according to mm without taxes

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Reference no: EM132422002

Problem: Thomson is an all-equity firm that has 300,000 shares of stock outstanding. The company is in the process of issuing 3,000 bonds with a face value of $1,000 per bond that are selling at 80% of par, to repurchase 75,000 shares of the outstanding stock. What is the value of this firm according to MM without taxes? Need to learn HOW to solve for the answer.

Reference no: EM132422002

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