What should jamie do if she prefers the all-equity structure

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Shoe Box Stores is currently an all-equity firm with 25,000 shares of stock outstanding. Management is considering changing the capital structure to 35 percent debt.

The interest rate on the debt would be 8 percent. Ignore taxes. Jamie owns 600 shares of Shoe Box Stores stock that is priced at $22 a share.

What should Jamie do if she prefers the all-equity structure but Shoe Box Stores adopts the new capital structure?

Reference no: EM131984497

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