Assume a 38% tax rate and a 10% discount rate when discounting future dividends. Assume that the new debt is constant and perpetual and that the buyback oper
Assume a 38% tax rate and a 10% discount rate when discounting future dividends. Assume that the new debt is constant and perpetual and that the buyback operation is unexpected by stock market participants. 1) What are the primary business risks of UST? Evaluate them from the point of view of a bondholder. 2) Why … Read more