Use the Information for the Question(s)below

question 88

Multiple Choice

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:

• A)$600 million.
• B)$470 million.
• C)$390 million.
• D)$400 million.

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Personal Injury

Harm or damage suffered by an individual to their body, mind, or emotions, as opposed to damage to property, often leading to a legal claim.

Physical Loss

Damage or destruction of property that results in its disappearance or renders it unusable in its existing form.

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A type of property insurance that covers losses and damages to an individual's house and assets in the home.

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A contract between an individual or entity and an insurance company, outlining coverage terms and conditions in exchange for premiums.