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A firm has assets of $240 million, of which $24 million is cash. It has debt of $96 million. If the firm were to repurchase

A firm has assets of $240 million, of which $24 million is cash. It has debt of $96 million. If the firm were to repurchase $9.6 million of its stock, what would its new debt-to-equity ratio be?

85.71% 71.43% 142.86% 35.71%

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