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"

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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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"

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