Tag: use a 10% discount rate and a 38% tax rate. Assume that stock market participants are unaware of the repurchase operation and that the additional debt is continuous and unchanging.

Evaluating UST Recapitalization Decision When discounting future dividends, use a 10% discount rate and a 38% tax rate. Assume that stock market participants are unaware of the repurchase operation and that the additional debt is continuous and unchanging., 1) Which…