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Boom and Bust Company is financed entirely by common stock that is priced to offer a 20% expected return. If the company repurchases 50% of

Boom and Bust Company is financed entirely by common stock that is priced to offer a 20% expected return. If the company repurchases 50% of the stock and substitutes an equal value of debt yielding 8%, what is the expected return on its common stock after refinancing?

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