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Your company's capital structure weight of equity is higher than the weight of debt. To finance new projects, your company is going to issue new
Your company's capital structure weight of equity is higher than the weight of debt. To finance new projects, your company is going to issue new bonds. Assuming the stock and bond prices do not change in response to the new bond issuance, which of the following statements MUST be true after the bond issuance? 1. Weight of debt will exceed weight of equity. II. Weight of equity will remain higher than weight of debt. III. The capital structure remains unchanged
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