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Exhilarating Hikes, Inc. decides that it has too much debt. The firm issues some equity and buys back debt with the proceeds. How does this

Exhilarating Hikes, Inc. decides that it has too much debt. The firm issues some equity and buys back debt with the proceeds. How does this action change the cost of equity for the firm?

No change - the cost of equity stays the same

The cost of equity increases

Impossible to tell based on the information given

The cost of equity decreases

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