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The firm ABC started its own business three years ago. It issued $50 million corporate debt and also issued $120 million stocks. Now the firm
The firm ABC started its own business three years ago. It issued $50 million corporate debt and also issued $120 million stocks. Now the firm grows so fast, the value of the firm increases to $150 million, and ABC wants to reward its stakeholders. If we ignore time of value effect, how much will the bondholders and shareholders get? (ignore the discount effect) You must give the numeric values and graph to interpret your results.
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