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Homemade leverage * Ms . Kraft owns 5 0 , 0 0 0 shares of the common stock of Copperhead Corporation with a market value
Homemade leverage Ms Kraft owns shares of the common stock of Copperhead
Corporation with a market value of $ per share, or $ overall. The company is currently financed as follows:
Copperhead now announces that it is replacing $ million of shortterm debt with an issue of
common stock. What action can Ms Kraft take to ensure that she is entitled to exactly the
same proportion of profits as before?
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