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:

Risky Behaviour

Actions that expose individuals to harm or substantial risk of negative consequences.

Adolescents

Individuals in the transitional stage of human development that occurs between childhood and adulthood, typically between ages 10 and 19.

Early Maturation

The process in which an individual reaches physical and sexual development earlier than the average age for their peer group.

Eating Disorders

Mental disorders characterized by abnormal or disturbed eating habits that negatively affect a person's health.