Assume That BB Is Considering Changing from Its Original Capital

question 6

Multiple Choice

assume that BB is considering changing from its original capital structure to a new capital structure with 45% debt and 55% equity.This results in a weighted average cost of capital equal to 10.4% and a new value of operations of $576,923.Assume BB raises $259,615 in new debt and purchases T-bills to hold until it makes the stock repurchase.What is the stock price per share immediately after issuing the debt but prior to the repurchase?

• A)$14.42
• B)$19.36
• C)$23.91
• D)$28.85
• E)$35.62

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Definitions:

Authoritarian Leaders

Leadership style characterized by individual control over all decisions with little input from group members, often involving strict rules and regulations.

Assertive Risk Takers

Individuals who confidently engage in actions that involve risk, often with the belief that they can positively influence the outcome.

Authentic Leadership

Authentic leadership is a leadership style characterized by self-awareness, integrity, transparency, and a focus on building trust with followers.

First- And Middle-Level Managers

Managers who oversee the day-to-day operations and are responsible for executing the policies and plans developed by upper management.