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ABC Ltd has total assets with a market value of $400 million, $60 million of which is cash. It has debt of $150 million, and
ABC Ltd has total assets with a market value of $400 million, $60 million of which is cash. It has debt of $150 million, and 20 million shares outstanding. Assuming perfect capital markets, if the company uses the $60 million in cash to repurchase its shares, calculate its debt-to-equity ratio after the share repurchase? Show all calculations.
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