Crozet Corporation plans to borrow just enough money to repurchase 100,000 shares. The following information relates to

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answerhappygod
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Crozet Corporation plans to borrow just enough money to repurchase 100,000 shares. The following information relates to

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Crozet Corporation plans to borrow just enough money torepurchase 100,000 shares. The following information relates to theshare repurchase: Shares outstanding before buyback 4.5 millionEarnings per share before buyback $5.00 Share price at time ofbuyback $50 After tax cost of borrowing 9% Crozet’s earnings pershare after the buyback will be closest to:
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