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

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

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