An all-equity firm has 1 million shares currently priced at…
An all-equity firm has 1 million shares currently priced at $100. They are considering issuing $23 million of permanent debt to repurchase shares. If the tax rate is 21%, how many shares will they repurchase? Assume that the firm will announce their intentions to the market in advance, and that the stock price will react upon annoucement. Round your answer to the nearest whole number.