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EpiscoWhat EpiscoWhat
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6 years ago
Assume that in the event of default, 20% of the value of MI's assets will be lost in bankruptcy costs.  Suppose that at the start of the year, MI has no debt outstanding, but has 5.6 million shares of stock outstanding.  If MI does not issue debt, its share price is closest to:
A) $5.15
B) $23.75
C) $23.90
D) $25.00
Textbook 
Corporate Finance: The Core

Corporate Finance: The Core


Edition: 4th
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EgorGruzdevEgorGruzdev
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6 years ago
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EpiscoWhat Author
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6 years ago
Brilliant ツ
Jose^2
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Yesterday
You make an excellent tutor!
SUmmerPeople
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Smart ... Thanks!
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