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Question 47 12 points) Lane Corp is currently all equity and has a vnlue of $1,000,000 and a cost of equity on 16 Lans plans

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Question 47 12 points) Lane Corp is currently all equity and has a vnlue of $1,000,000 and a cost of equity on 16 Lans plans to issue $600,000 of debt with an interest rate ot 106 and use the proceeds to repurchase stock. Ilang pays no taxes what will be the expected return on Lang's stock after the debt issue? 124 18.4 19.0% 20.02 25.096

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