11.8. In Section 11.3s illustration, asset values increased 10 percent from 2001 to 2002, from $100 million
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11.8. In Section 11.3’s illustration, asset values increased 10 percent from 2001 to 2002, from
$100 million to $110 million.
a. Compute the percentage increase in the value of equity if the firm is financed with $50 million in debt.
b. Compute the leverage ratio of this firm in 2002.
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Related Book For 
Financial Markets And Corporate Strategy
ISBN: 9780071157612
2nd Edition
Authors: Mark Grinblatt, Sheridan Titman
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