Look back at the Pfizer example in Section 18.1. Suppose that Pfizer moves to a 40 percent

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Look back at the Pfizer example in Section 18.1. Suppose that Pfizer moves to a 40 percent book debt ratio by issuing debt and using the proceeds to repurchase shares. Consider only corporate taxes. Now reconstruct Table 18.3(b) to reflect the new capital structure.

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Principles of Corporate Finance

ISBN: 978-0072869460

7th edition

Authors: Richard A. Brealey, Stewart C. Myers

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