Effect of Debt Issuance on Stock Valuation
Hightower, Inc. plans to announce itwill issue $2.0 million of perpetual debt and use the proceeds to repurchase common stock. The bonds will sell at par with a coupon rate of 596. Hightower, Inc. is currently an all-equity company worth $7.5 million with QOo,000 shares of common stock outstanding. After the sale ofthe bonds, the […]