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Tauntons is an all-equity firm that has 151000 shares of stock outstanding. The CFO is considering borrowing $239,000 at 7 p
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Answer #1
Total No. Of shares 151000
market price of 20000 shares $233,000
Market price of 1 share 11.65
market price of 131000 shares $ 1526150
borrowing $233,000
Value of firm $ 1759150
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