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18. ABC company has no debt. The company has a market value of worth $400,000. Lets assume that the ABC company sells debt worth $225,000

18. ABC company has no debt. The company has a market value of worth $400,000. Lets assume that the ABC company sells debt worth $225,000 to finance the share repurchase. What is the effect of this policy on the weights of both equity and debt?

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