Use the Information for the Question(s)below

question 66

Multiple Choice

Use the information for the question(s) below.
Big Blue Banana (BBB) is a clothing retailer with a current share price of $10.00 and with 25 million shares outstanding.Suppose that Big Blue Banana announces plans to lower its corporate taxes by borrowing $100 million and using the proceeds to repurchase shares.
-Assuming perfect capital markets,the share price for BBB after this announcement is closest to:

• A)$11.40.
• B)$10.85.
• C)$10.00.
• D)$8.60.

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Definitions:

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Genetic Disorders

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