MJ Enterprises Has 50 Million Shares Outstanding with a Market

question 2

Essay

MJ Enterprises has 50 million shares outstanding with a market price of $25 per share and no debt.MJ has had consistently stable earnings,and pays a 35% tax rate.Management plans to borrow $500 million on a permanent basis through a leveraged recapitalization in which they would use the borrowed funds to repurchase outstanding shares.Calculate MJ's share price following announcement of the recapitalization plan.

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Definitions:

Professional Groups

Organizations or associations composed of individuals engaged in a common profession, aiming to further their fields and support their members' professional interests.

Social Welfare

Organized activities or structures in society designed to support individuals in meeting their basic needs and enhancing their well-being.

National Association

An organized group at the national level that often represents people with similar interests or professions.

Social Workers

Professionals dedicated to helping people solve and cope with problems in their everyday lives by providing support and resources.