Horizon Landscape currently has 62,000 shares of stock outstanding and no debt.The price per share is $18.50.The firm is considering borrowing funds at 7 percent interest and using the proceeds to repurchase 12,000 shares of stock.Ignore taxes.How much is the firm borrowing?
A) $240,000
B) $222,000
C) $184,000
D) $1
E) $225,000
Correct Answer:
Verified
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