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Let's image two companies, A and B, that exist in M&M' perfect capital market. Company A has no debt (unlevered) with 3 million shares outstanding
Let's image two companies, A and B, that exist in M&M' perfect capital market. Company A has no debt (unlevered) with 3 million shares outstanding that trade at a price of 23. Company B has 8 million shares outstanding and $19 million in debt. Assuming the two companies have identical assets and cash flows, what is the share price of company B?
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