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question 88

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Use the information for the question(s) below.
KD Industries has 30 million shares outstanding with a market price of $20 per share and no debt.KD has had consistently stable earnings,and pays a 21% tax rate.Management plans to borrow $200 million on a permanent basis through a leveraged recapitalization in which they would use the borrowed funds to repurchase outstanding shares.
-The value of KD's unlevered equity is closest to:


Definitions:

Vocational Interest Scales

Psychological assessment tools that measure an individual's interests and preferences toward certain careers or professional activities to help guide career planning or changes.

Production Career Path

A career trajectory focused on the areas of producing, manufacturing, and overseeing the creation of goods or services.

Oregon

A state in the Pacific Northwest region of the United States, known for its diverse landscapes of forests, mountains, farms, and beaches.

Vocational Interest Scales

Psychological assessments used to evaluate an individual's preferences and interests in various vocational areas.

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