Refer to Exhibit 15

question 33

Multiple Choice

Refer to Exhibit 15.1.Assume that PP is considering changing from its original capital structure to a new capital structure with 35% debt and 65% equity.This results in a weighted average cost of capital equal to 9.4% and a new value of operations of $510, 638.Assume PP raises $178, 723 in new debt and purchases T-bills to hold until it makes the stock repurchase.PP then sells the T-bills and uses the proceeds to repurchase stock.How many shares remain after the repurchase, and what is the stock price per share immediately after the repurchase?

• A) 7, 500; $71.49
• B) 7, 000; $59.57
• C) 6, 500; $51.06
• D) 6, 649; $53.33
• E) 6, 959; $58.78

---

Definitions:

Entities

Any individual, group, organization, or system that possesses a distinct, separate existence for purposes of analysis or regulatory recognition.

Unary Relationship

A relationship in database design where a table has a relationship with itself, linking records within the same table.

Microsoft Access

Microsoft's database management system intertwines the relational Microsoft Jet Database Engine, a graphical user interface, and tools for software development.

QBE

Query By Example, a feature of database management systems that allows users to search by filling out a form or a "template" with example elements.