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Suppose Summa Industries and Cumma Technology have identical assets that generate identical cash flows. Summa Industries is an all-equity firm, with 8 million shares outstanding

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Suppose Summa Industries and Cumma Technology have identical assets that generate identical cash flows. Summa Industries is an all-equity firm, with 8 million shares outstanding that trade for a price of $22.00 per share. Cumma Technology has 23 million shares outstanding, as well as debt of $52.80 million. a. According to MM Proposition I, what is the stock price for Cumma Technology? b. Suppose Cumma Technology stock currently trades for $10.96 per share. What arbitrage opportunity is available? What assumptions are necessary to exploit this opportunity? a. According to MM Proposition I, what is the stock price for Cumma Technology? According to MM Proposition I, the stock price per share for Cumma Technology is $ (Round to the nearest cent.)

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