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Author Question: The Rumpel Felt Co. was all equity financed. It recently borrowed money and used the funds to ... (Read 69 times)

SAVANNAHHOOPER23

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on: Apr 25, 2021
The Rumpel Felt Co. was all equity financed. It recently borrowed money and used the funds to repurchase shares. The stock price rose as a result. Which of the following explains the increase in stock price?

I.  The tax shields generated by the new debt
II.  A reduction in agency costs due to the interest on the debt
III.  A generous premium included in the repurchase price
◦ I only
◦ II only
◦ III only
◦ I and II
◦ I and III
Corporate Finance Online ¦ Eakins, McNally ¦ 2nd Edition
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Marked as best answer by SAVANNAHHOOPER23 on Apr 25, 2021

manuelcastillo

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Reply #1 on: Apr 25, 2021
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
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SAVANNAHHOOPER23

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Reply 2 on: Apr 25, 2021
YES! Correct, THANKS for helping me on my review

adammoses97

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Reply 3 on: Yesterday
Great answer, keep it coming :)

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