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Uriah Inc. is financed with 100% equity and 0% debt in market value terms. In a perfect capital market (no taxes, no bankruptcy costs, no

Uriah Inc. is financed with 100% equity and 0% debt in market value terms. In a perfect capital market (no taxes, no bankruptcy costs, no financing frictions), if Uriah produces zero cash flows and decides to issue new bonds to repurchase shares of stock, what will be the most likely impact to the cost of equity capital (re)?

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