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Author Question: The CFO of Sasa Industries plans to have the company issue $400 million common shares and use the ... (Read 84 times)

jany123

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The CFO of Sasa Industries plans to have the company issue $400 million common shares and use the proceeds to pay off some of its outstanding bonds. Assume that the company, which does not pay any dividends, takes this action, and that total assets, operating income (EBIT), and its tax rate all remain constant. Which of the following would occur?

The company’s net income would decrease.


The company would have the same common equity.


The company’s interest expense would remain constant.


The company’s taxable income would increase.



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Marked as best answer by jany123 on Aug 7, 2023

kugyo01

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jany123

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Reply 2 on: Aug 7, 2023
:D TYSM


carlsona147

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Reply 3 on: Yesterday
Wow, this really help

 

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