Assume That AJC Is Considering Changing from Its Original Capital

question 13

Multiple Choice

assume that AJC is considering changing from its original capital structure to a new capital structure that results in a stock price of $64 per share The resulting capital structure would have a $336,000 total market value of equity and a $504,000 market value of debt How many shares would AJC repurchase in the recapitalization?

• A) 4,250
• B) 4,500
• C) 4,750
• D) 5,000
• E) 5,250

---

Definitions:

Quota

A restriction on the number of units of a particular product that can be imported into a country.

Embargo

A prohibition on trade in a particular product.