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Suppose Beta Industries and Delta Technology have identical assets that generate identical cash flows. Beta Industries is an all-equity firm, with 12 million shares outstanding

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Suppose Beta Industries and Delta Technology have identical assets that generate identical cash flows. Beta Industries is an all-equity firm, with 12 million shares outstanding that trade for a price of $17.00 per share. Delta Technology has 23 million shares outstanding, as well as debt of $61.20 million. a. According to MM Proposition I, what is the stock price for Delta Technology? b. Suppose Delta Technology stock currently trades for $7.91 per share. What arbitrage opportunity is available? What assumptions are necessary to exploit this opportunity

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