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Pennewell Publishing Inc. (PP)Pennewell Publishing Inc. (PP) is a zero growth company. Itcurrently has zero debt and its earnings before interest and taxes(EBIT) are $80,000. PP's current cost of equity is 10%, and its taxrate is 25%. The firm has 10,000 shares of common stock outstandingselling at a price per share of $48.00.Refer to the data for Pennewell Publishing Inc. (PP). Assume thatPP is considering changing from its original capital structure to anew capital structure with 35% debt and 65% equity. This results ina weighted average cost of capital equal to 9.125% and a new valueof operations of $657,534. Assume PP raises $230,137 in new debtand purchases T-bills to hold until it makes the stock repurchase.PP then sells the T-bills and uses the proceeds to repurchasestock. How many shares remain after the repurchase, and what is thestock price per share immediately after the repurchase?Remaining Shares; P Posta. 7,000; $74.26b. 6,500; $65.75c. 7,500; $86.18d. 6,959; $58.03e. 6,649; $63.48