Currently, the firm is all equity funded with 1000000 shares
valued at $10 per share and the required return on equity is 8%.
Income tax rate is 25%. Your banker has indicated that the
following leverage restructurings are possible: Number of shares
750,000 600,000 500,000 Debt Leverage 25.00% 40.00% 50.00% Interest
7.50% 8.00% 8.50% ROE 8.50% 8.75% 9.25% Estimate the share prices
for the following debt restructures 25%, 40%, and, 50%,
respectively: Group of answer choices
$10.34; $10.67; $10.41
$10.67; $10.34; $10.41
$10.67; $10.41; $10.34
$10.41; $10.67; $10.34
$10.41; $10.34; $10.67
Currently, the firm is all equity funded with 1000000 shares valued at $10 per share and the required return on equity i
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