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You are a real estate investor who bought a Walgreens drug store with a cap rate of 5%. Walgreens is rated A when you buy

You are a real estate investor who bought a Walgreens drug store with a cap rate of 5%. Walgreens is rated A when you buy it. The month after you have purchased the Walgreens drug store, the company is taken private in an LBO and Walgreens debt/EBITDA increases from 2.0x to 5.0x. If you were to sell the Walgreens and nothing else has changed, should the new cap rate be higher or lower than 5% and why?

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