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Taggart's stock issue

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5) Taggart Technologies is considering issuing new common stock and using the proceeds to reduce its outstanding debt. The stock issue would have no effect on total assets, the interest rate Taggart pays, EBIT, or the tax rate. What is likely to occur if the company goes ahead with the stock issue?

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Solution Summary

The solution discusses what might occur if Taggart goes ahead with the stock issue.

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Edwin Sinclar, MBA
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  • MBA, Aspen University
  • Bachelor of Science , Berea College
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