You have decided to retire and want to sell your shares in a closely held, all equity firm. The other shareholders have agreed to have the firm borrow $954,200 to purchase your 6,500 shares of stock at the current market value. The total number of shares outstanding is 30,000. What will be the new price per share after the repurchase?

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A:

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A: Future Value: It is the future worth of the present amount and is estimated by the product of the…

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A: One time principal = P Simple interest for first 5 years (r) = 4% Compounded interest for next 3…

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A: Optimal Capital Structure: The optimal capital structure of a firm is the combination of debt and…

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A: Treasury bond refers to the securities that should be paid at a fixed rate of interest every six…

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A: Present value of the growing perpetuity = Cash Flows / ( Discount Rate - Growth Rate