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Epiphany is an all-equity firm with an estimated market value of $500,000. The firm sells $175,000 of debt and uses the proceeds to purchase outstanding

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Epiphany is an all-equity firm with an estimated market value of $500,000. The firm sells $175,000 of debt and uses the proceeds to purchase outstanding equity. Compute the weight in equity and the weight in debt after the proposed financing and repurchase of equity. I A. 0.18, 0.83 B. 0.65, 0.35 C. 0.21, 0.79 D. 0.35

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