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Dew It Inc. is an all-equity firm with assets worth $360 and 20 shares outstanding....

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Finance

Dew It Inc. is an all-equity firm with assets worth $360 and 20 shares outstanding. This company plans to borrow $200 and use these funds to repurchase shares. The firms corporate tax rate is 20%, and it plans to keep its outstanding debt equal to $200 permanently. Which of the following amounts is closest to the lowest price Dew It can offer and have shareholders tender their shares?

$10

$20

$30

$40

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