Watson's Feed Mill is an all equity ﬁrm that has 20,000 shares of stock outstanding. The company has decided to borrow $400,000 to buy out the shares of a family stockholder who holds 1,200
Shares. What is the total value of this ﬁrm if you ignore taxes?
A) $5.48 million
B) $6.00 million
C) $6.42 million
D) $6.67 million
E) $7.00 million

Question

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The Answer of Watson's Feed Mill is an all equity ﬁrm that has 20,000 shares of stock outstanding. The company has decided to borrow $400,000 to buy out the shares of a family stockholder who holds 1,200
Shares. What is the total value of this ﬁrm if you ignore taxes?
A) $5.48 million
B) $6.00 million
C) $6.42 million
D) $6.67 million
E) $7.00 million

Watson's Feed Mill Is an All Equity ﬁRm That Has