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We learned Application: A Leveraged Recapitalization (5of 7)Example--After borrowing, Harrison's liabilities grow by $80 million, which is also equal to the amount of cash the
We learned Application: A Leveraged Recapitalization (5of 7)Example--After borrowing, Harrison's liabilities grow by $80 million, which is also equal to the amount of cash the firm has raised. Because both assets and liabilities increase by the same amount, the market value of the equity remains unchanged.
What I want to ask is, if assets and liabilities are not the same, what kind of changes will happen
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