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the greenbriar is an all-equity firm with a total market value of $584,000 and 22,800 shares of stock outstanding. management is considering issuing $197,000 of debt at an interest rate of 10 percent and using the proceeds on a stock repurchase. ignore taxes. how many shares will the firm repurchase if it issues the debt securities? multiple choice 9,323 shares 58,400 shares 7,691 shares 8,546 shares 769 shares

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When it issue the debt securities, the number of units to be refinanced will be 7,691 shares.

Why do you use the term shares?

Shares are fractional ownership interests in a corporation. For certain businesses, shares are a type of financial instrument that allows for the equitable distribution of any declared residual revenues in the form of payments. A stock that does not generate a return does not share its income with its owners.

Briefing :

Price per share equals Market Value of the Firm / Shares Outstanding.

Price per share = $584,000 / 22,800 shares

Price per share = $ 25.6140 per share

Now we must evaluate how many shares may be bought with debt totaling $197,000.

Number of shares to be repurchased = Debt amount / price per share

Number of shares to be repurchased = $197,000 / $25.6140

Number of shares to be repurchased = 7,691.09

Thus number of shares to be repurchased in 7,691 shares

Consequently, there will be cases with similar shares acquired.

To know more about shares visit :

https://brainly.com/question/28392295

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