Use the Information for the Question(s)below

question 88

Multiple Choice

Use the information for the question(s) below.
KD Industries has 30 million shares outstanding with a market price of $20 per share and no debt.KD has had consistently stable earnings,and pays a 21% tax rate.Management plans to borrow $200 million on a permanent basis through a leveraged recapitalization in which they would use the borrowed funds to repurchase outstanding shares.
-The value of KD's unlevered equity is closest to:

• A)$600 million.
• B)$470 million.
• C)$390 million.
• D)$400 million.

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Definitions:

Gender Identities

The personal sense of one's own gender, which may or may not correspond with the sex assigned at birth, and can include non-binary or transgender identities.

Heterosexual

A term describing a person who is romantically or sexually attracted to individuals of the opposite sex.

Cisgender

A term for people whose gender identity matches the sex they were assigned at birth.

Gender Dysphoria

The psychological distress experienced by individuals whose gender identity does not align with their biological sex.