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Louis Corporation finances its operations with $80 million in stock and $30 million in bonds. If the firm issues $20 million in additional bonds and

Louis Corporation finances its operations with $80 million in stock and $30 million in bonds. If the firm issues $20 million in additional bonds and uses the proceeds to retire $20 million worth of equity. What will be the firms new leverage(debt to equity) ratio? (Assume zero taxes and perfect capital markets)

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