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LangFun Inc., a developer of an award-winning language-learning app, is currently an all-equity firm with 10 million shares outstanding and a stock price of $25

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LangFun Inc., a developer of an award-winning language-learning app, is currently an all-equity firm with 10 million shares outstanding and a stock price of $25 per share. LangFun Inc. is subject to a 23% corporate tax rate, and the corporate tax is the only market imperfection. LangFun Inc. will announce a leveraged recapitalization tomorrow. They will borrow $10 million as a permanent (interest-only) debt, and they will use these funds ($10 million) to pay a one-time special dividend to their shareholders. Which of the following is correct? LangFun's ex-dividend price is strictly above $24, but strictly below $25. LangFun's ex-dividend price is strictly above $25. LangFun's ex-dividend price is strictly below $24. LangFun's ex-dividend price is exactly $25. LangFun's ex-dividend price is exactly $24

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