[Solved] AirCnC plans to decrease its financial le

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AirCnC plans to decrease its financial leverage by issuing equity and using the proceeds to repurchase its debt. In a Modigliani and Miller world with

AirCnC plans to decrease its financial leverage by issuing equity and using the proceeds to repurchase its debt. In a Modigliani and Miller world with no corporate taxes what is the most likely effect of this transaction?

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