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E. The projected EBIT of a firm is $3{]-[},. The rm currently,r has 1{]-[},{] shares of common stock outstanding at a value of $18 per

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E. The projected EBIT of a firm is $3{]-[},. The rm currently,r has 1{]-[},{] shares of common stock outstanding at a value of $18 per share. The rm has an debt. By how much will the RUE change if the rm burrows $, at 3% interest and uses the funds to repurchase shares of stuck at the market price? Iguure taxes. [2 marks)

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