5. Executive Cheese has issued debt with a market value of $100 million and hasoutstanding 15 million shares with a market price of $10 a share. It now announcesthat it intends to issue a further $60 million of debt and to use the proceeds to buyback common stock. Debtholders, seeing the extra risk, mark the value of the existingdebt down to $70 million. How is the market price of the stock affected by the announcement?
https://essaysprompt.com/wp-content/uploads/2020/10/19-2.png 0 0 https://essaysprompt.com/wp-content/uploads/2020/10/19-2.png 2022-12-19 08:06:272022-12-19 08:06:275. Executive Cheese has issued debt with a market value of $100 million and haso
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