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A firm announces it will increase leverage by borrowing money and using all of it to buy back equity. In a perfect capital market (no

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A firm announces it will increase leverage by borrowing money and using all of it to buy back equity. In a perfect capital market (no taxes, costs of financial distress, agency problems, asymmetric information, etc.) what happens to the equity value after the firm makes the announcement but before the recapitalization is completed

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