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. You have the following information. At t = 0 a firm issues $1,000 of debt with an interest cost of 20 per cent, and
. You have the following information. At t = 0 a firm issues $1,000 of debt with an interest cost of 20 per cent, and 1,000 shares with a market value of $1 (i.e., p0 = $1). At t = 1 there are expec...
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