Day 'N Nite Currently Has 25 000 Shares of Stock

question 23

Multiple Choice

Day 'n Nite currently has 25 000 shares of stock outstanding and no debt.The price per share is $20.The firm is considering borrowing funds at 8 per cent interest and using the proceeds to repurchase 5000 shares of stock.Ignore taxes.How much is the firm borrowing?

• A)$180 000
• B)$140 000
• C)$100 000
• D)$165 000
• E)$185 000

---

Definitions:

Legislation

The creation and enactment of laws by a governing body or legislative authority.

Demographic Concerns

Issues related to the statistical characteristics of populations, such as aging populations or changing family structures, that can impact society and organizations.

Staffing Policies

Guidelines and decisions regarding the recruitment, selection, training, and development of staff within an organization.

Environmental Scanning

The process of gathering, analyzing, and using information about trends, events, and relationships in an organization's external environment.