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Assume capital markets are perfect ( i . e . the ModiglianiMiller Theorems hold ) . The Cat Nap Pet Stores capital structure is currently

Assume capital markets are perfect $($ i $.$ e $.$ the ModiglianiMiller Theorems hold $) .$ The Cat Nap Pet Stores capital structure is currently comprised of $13$ million dollars of debt and $16$ million dollars of equity. If the firm issues $2$ 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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