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Business, 30.10.2019 00:31 anthonyalvar6636

The anson jackson court company (ajc) currently has $200,000 market value (and book value) of perpetual debt outstanding carrying a coupon rate of 6%. its earnings before interest and taxes (ebit) are $100,000, and it is a zero growth company. ajc's current cost of equity is 8.8%, and its tax rate is 40%. the firm has 10,000 shares of common stock outstanding selling at a price per share of $60.00. refer to the data for the anson jackson court company (ajc). now assume that ajc is considering changing from its original capital structure to a new capital structure with 50% debt and 50% equity. if it makes this change, its resulting market value would be $820,000. what would be its new stock price per share? $58 $60 $59 $61 $62

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The anson jackson court company (ajc) currently has $200,000 market value (and book value) of perpet...
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