Taunton's is an all-equity firm that has 150,000 shares of stock outstanding. The CFO is considering borrowing $215,000 at 7 percent interest to repurchase 17,000 shares. Ignoring taxes, what is the value of the firm? Round to the nearest dollar and format as "X,XXX,XXX"

Taunton's is an all-equity firm that has 150,000 shares of stock outstanding. The CFO is considering borrowing $215,000 at 7 percent interest to repurchase 17,000 shares. Ignoring taxes, what is the value of the firm? Round to the nearest dollar and format as "X,XXX,XXX"

EBK CFIN

6th Edition

ISBN:9781337671743

Author:BESLEY

Publisher:BESLEY

Chapter12: Capital Structure

Section: Chapter Questions

Problem 8PROB

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