2. The ratio of debt to equity for a firm is changed by issuing debt to repurchase...

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2. The ratio of debt to equity for a firm is changed by issuing debt to repurchase stock or issuing stock to pay off debt. In other words, a change in capital structure is effected immediately. In this regard, we assume no transaction costs.

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Financial Management And Policy

ISBN: 9780130326577

12th Edition

Authors: James C. Van Horne

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Question Posted: Oct 21, 2024 03:00 AM

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2. The ratio of debt to equity for a firm is changed by issuing debt to repurchase...

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Financial Management And Policy

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