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Suppose that a company equity is currently selling for $2550 per share and that there

Suppose that a company's equity is currently selling for $25.50 per share and that there are 3.6 million shares outstanding and 16 thousand bonds outstanding, which are selling at 95 percent of par. If the firm was considering an active change to their capital structure so that the firm would have a D/E of 1.6, which type of security (stocks or bonds) would they need to sell to accomplish this, and how much would they have to sell? (Round your intermediate ratio to 4 decimal places.)

Suppose that a companys equity is currently selling for $25.50 per share and that there are 3.6 million shares outstanding a

Suppose that a company's equity is currently selling for $25.50 per share and that there are 3.6 million shares outstanding and 16 thousand bonds outstanding, which are selling at 95 percent of par. If the firm was considering an active change to their capital structure so that the firm would have a D/E of 1.6, which type of security (stocks or bonds) would they need to sell to accomplish this, and how much would they have to sell? (Round your intermediate ratio to 4 decimal places.) Multiple Choice $43,448,940 in new debt $50,643,100 in new equity $50,643,100 in new debt $43,448,940 in new equity

Jan 31 2020 View more View Less

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