How many shares will the firm repurchase

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Question

The Palantir is an all-equity firm with a total market value of $566,000 and 22,200 shares of stock outstanding. Management is considering issuing $173,000 of debt at an interest rate of 9 percent and using the proceeds on a stock repurchase. Ignore taxes. How many shares will the firm repurchase if it issues the debt securities?

Reference no: EM133578601

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