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SureShot Inc. is financed with 60% equity and 40% debt in market value terms. In a perfect capital market (no taxes, no bankruptcy costs, no

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SureShot Inc. is financed with 60% equity and 40% debt in market value terms. In a perfect capital market (no taxes, no bankruptcy costs, no financing frictions), if SureShot issues $0.5 million in stock to pay down debt, what will be the most likely impact to the cost of equity capital (r.)? re increases re decreases re does not change

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