18. MM Proposition 2 (S16-3) Look back to Problem 17. Suppose now that Archimedes repurchases debt and

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18. MM Proposition 2 (S16-3) Look back to Problem 17. Suppose now that Archimedes repurchases debt and issues equity so that D/V = 0.3. The reduced borrowing causes rD to fall to 11%. How do the other variables change?

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Principles Of Corporate Finance

ISBN: 9781264080946

14th Edition

Authors: Richard Brealey, Stewart Myers, Franklin Allen, Alex Edmans

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