Participating in primary market transaction

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Reference no: EM132061969

1. When you engage in one of the following stock transactions, you are participating in a primary market transaction. a. initial public offerring b. a limit order c. a stop loss order d. a purchase on the margin e. a discretionary transaction.

2. An unlevered firm with a market value of $1 million has 50000 shares outstanding. The firm restructures itself by issuing 200 new par bonds with face value $1000 and an 8% coupon. The firm uses the proceeds to repurchases outstanding stock. In considering the newly levered versus formerly unlevered firm, what is the break-even EBIT? the tax rate is 15%.

Reference no: EM132061969

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