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XYZ is an all-equity firm that has 300,000 shares of stock outstanding. The company is in the process of borrowing $2 million at 8 percent

XYZ is an all-equity firm that has 300,000 shares of stock outstanding. The company is in the process of borrowing $2 million at 8 percent interest to repurchase 50,000 shares of the outstanding stock. What was the value of this firm before capital restructuring? What is the value of this firm after capital restructuring?

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