Question
ABC Corp is unlevered. Managers issue debt and use the proceeds to buy back some of the equity. There are no taxes and no bankruptcy
ABC Corp is unlevered. Managers issue debt and use the proceeds to buy back some of the equity. There are no taxes and no bankruptcy costs. Which of the following is likely to happen?
| Firm value will increase | ||
| Cost of equity will decrease | ||
| Cost of equity will be unaffected | ||
| Firm s WACC will stay the same. |
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Trillions How A Band Of Wall Street Renegades Invented The Index Fund And Changed Finance Forever
Authors: Robin Wigglesworth
1st Edition
0593087682,0593087690
