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What is the market value of the firm's equity if it issues 800,000 in perpetual debt at 10% interest and uses the proceeds to repurchase
What is the market value of the firm's equity if it issues 800,000 in perpetual debt at 10% interest and uses the proceeds to repurchase shares?
a) 280,000
b) 520,000
c) 880,000
d) 1,240,000
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