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You own shares in a firm that consists of $50M in debt and $50M in equity. Suppose that the firm repurchases $30M worth of shares,
- You own shares in a firm that consists of $50M in debt and $50M in equity. Suppose that the firm repurchases $30M worth of shares, implying that the firm now has $50M in debt and $20M in equity. How does this affect the riskiness of the shares you hold in this firm? Explain. No calculations are needed for this question. (5 points)
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Consolidation In The European Financial Industry
Authors: R. Bottiglia, E. Gualandri , G. Mazzocco
1st Edition
0230233228,0230275028
