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in a perfect capital market, a firm has $20m debt at cost of 5% and 515m equity at cost of 10%. What will its firm

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in a perfect capital market, a firm has $20m debt at cost of 5% and 515m equity at cost of 10%. What will its firm value become if it raises another 5m debt at the same cost of debt and use all of them to buy back equity? 40 none above 35 30

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