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Assume That AJC Is Considering Changing from Its Original Capital

Question 41

Multiple Choice

assume that AJC is considering changing from its original capital structure to a new capital structure that results in a stock price of $64 per share The resulting capital structure would have a $336,000 total market value of equity and a $504,000 market value of debt How many shares would AJC repurchase in the recapitalization?


A) 4,250
B) 4,500
C) 4,750
D) 5,000
E) 5,250

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