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As chief financial officer of the Magnificent Electronics Corporation (MEC), you are considering a recapitalization plan that would convert MEC from its current all-equity capital

As chief financial officer of the Magnificent Electronics Corporation (MEC), you are considering a recapitalization plan that would convert MEC from its current all-equity capital structure to one that includes substantial financial leverage. MEC now has 500,000 shares of common stock outstanding, which are selling for $60 each. You expect the firm

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