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Use the information for the question(s) below.
Assume that Rose Corporation's (RC) EBIT is not expected to grow in the future and that all earnings are paid out as dividends.RC is currently an all-equity firm.It expects to generate earnings before interest and taxes (EBIT) of $6 million over the next year.Currently RC has 5 million shares outstanding and its stock is trading for a price of $12.00 per share.RC is considering borrowing $12 million at a rate of 6% and using the proceeds to repurchase shares at the current price of $12.00.
-Following the borrowing of $12 million and subsequent share repurchase,the number of shares that RC will have outstanding is closest to:
Retentive Timer
A type of PLC timer that retains its value even after the power is turned off or the controlling logic is no longer true.
Nonretentive Timer
A timer in a control system that does not retain its count or state after a power cycle, restarting from zero.
Retentive
In the context of programmable logic controllers, refers to memory or functions that retain their value or state even after the PLC is turned off or loses power.
Loss Of Power
Loss of power refers to the interruption or cessation of electrical supply to a system, device, or facility, affecting its operation and functionality.
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