Look back at the Johnson & Johnson example in Section 18-1. Suppose Johnson & Johnson increases its

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Look back at the Johnson & Johnson example in Section 18-1. Suppose Johnson & Johnson increases its long-term debt to $30 billion. It uses the additional debt to repurchase shares. Reconstruct Table 18.4B with the new capital structure. How much additional value is added for Johnson & Johnson shareholders if the table's assumptions are correct?
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Principles of Corporate Finance

ISBN: 978-1259144387

12th edition

Authors: Richard Brealey, Stewart Myers, Franklin Allen

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