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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?

0.39, 0.61

0.72, 0.28

0.28, 0.72

0.44, 0.56

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