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Question 6 ABC is a leveraged company with market values of its equity and debt as $20 million and $10 million, respectively. It has decided
Question 6 ABC is a leveraged company with market values of its equity and debt as $20 million and $10 million, respectively. It has decided to undertake a capital restructuring which will result in new market values of both equity and debt to be $15 million each. Assuming that all other company characteristics will remain unchanged, ABC's new equity beta will be lower than the old equity beta (before restructuring). True/False and short explanation
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