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The company is owned by a private equity fund that wishes to do a leveraged recapitalization. To do this, the company will borrow an additional

The company is owned by a private equity fund that wishes to do a leveraged recapitalization. To do this, the company will borrow an additional $60 and combine it with $40 of its cash to pay out a special $100 cash distribution to its shareholders. What will happen to the market-value balance sheet and what will the shares be worth?

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