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5, Debt Irrelevance, Companies A and B differ only in their capital structure. A is financed 30% debt and 70% equity; Bis financed 10% debt
5, Debt Irrelevance, Companies A and B differ only in their capital structure. A is financed 30% debt and 70% equity; Bis financed 10% debt and 90% equity. The debt of both companies is risk-free. L.O16-1) a. Rosencrantz owns 1% of the common stock of A, what other investment package would produce identical cash flows for Rosencrantz b, Guildenstern owns 2% of the common stock of B. What other investment package would produce identical cash flows for Guildenstern? uCG What is wrong with the following arguments? (LO16-1) u hoth stock and bondholders demand
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