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Question 3 When Shasta borrows money and then later repays the debt with interest, he: increases the equity value of the firm as a result

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3

When Shasta borrows money and then later repays the debt with interest, he:

increases the equity value of the firm as a result of the two transactions.

decreases the equity value of the firm as a result of the two transactions.

does not change the equity value of the firm as a result of the two transactions.

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