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The Jean Outlet is an all-equity firm that has 64,000 shares of stock outstanding. The company...

The Jean Outlet is an all-equity firm that has 64,000 shares of stock outstanding. The company has decided to borrow $120,000 to repurchase 1,500 shares of its stock from the estate of a deceased shareholder. What is the total value of the firm if you ignore taxes?

Multiple Choice

  • $5,340,000

  • $4,950,000

  • $5,120,000

  • $5,068,700

  • $4,638,000

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