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Consider two firms A and B that are identical in all respects except capital structure. Firm A has $160 million in equity outstanding and $40

Consider two firms A and B that are identical in all respects except capital structure. Firm A has $160 million in equity outstanding and $40 million in bonds outstanding. Firm B has $200 million in equity outstanding and $0 million in bonds outstanding.

(a) Suppose an investor has an $8 million investment in the stock of firm A. What alternative $8 million investment that includes firm B

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