Business, 16.12.2019 23:31, tiwaribianca475

Galt industries has 50 million shares outstanding and a market capitalization of $1.25 billion. it also has $750 million in debt outstanding. galt industries has decided to delever the firm by issuing new equity and completely repaying all the outstanding debt. assume perfect capital markets. suppose you are a shareholder in galt industries holding 600 shares, and you disagree with this decision to delever the firm. you can undo the effect of this decision by: a) borrow $6,000 and buy 240 shares of stockb) sell 240 shares of stock and lend $6,000c) borrow $9,000 and buy 360 shares of stockd) sell 360 shares of stock and lend $9,000

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Galt industries has 50 million shares outstanding and a market capitalization of $1.25 billion. it a...