What will be the market value of equity after the repurchase

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Reference no: EM131981830

Simpson's is an all-equity firm that has 400,000 shares of stock outstanding. The company is in the process of borrowing $1.5 million at 5 percent interest to repurchase 33,333 of the firm's outstanding shares. Ignore taxes. What will be the market value of equity after the repurchase?

Reference no: EM131981830

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