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Assume capital markets are perfect ( i . e . the Modigliani - Miller Theorems hold ) . The Cat Nap Pet Stores capital structure

Assume capital markets are perfect $($ i $.$ e $.$ the Modigliani $-$ Miller Theorems hold $) .$ The Cat Nap

Pet Stores capital structure is currently comprised of $16$ million dollars of debt and $19$ million

dollars of equity. If the firm issues $3$ million dollars in new debt, what will the value of the

company's equity be after the issuance of the new debt?

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