Tree Farms currently has 48,000 shares of stock outstanding and no debt.The price per share is $22.50.The firm is considering borrowing funds at 8.5 percent interest and using the proceeds to repurchase 1,750 shares of stock.Ignore taxes.How much is the firm borrowing?
A)$42,500
B)$39,375
C)$32,750
D)$32,500
E)$40,000

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The Answer of Tree Farms currently has 48,000 shares of stock outstanding and no debt.The price per share is $22.50.The firm is considering borrowing funds at 8.5 percent interest and using the proceeds to repurchase 1,750 shares of stock.Ignore taxes.How much is the firm borrowing?
A)$42,500
B)$39,375
C)$32,750
D)$32,500
E)$40,000

Tree Farms Currently Has 48,000 Shares of Stock Outstanding and No