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Your current capital structure is 12% debt which results in a firm value of 1,803,893. You are planning on changing to a 60% debt structure
Your current capital structure is 12% debt which results in a firm value of 1,803,893. You are planning on changing to a 60% debt structure which results in a $250,000 higher firm value. What is the stock price at the new capital structure if you have 100,000 shares outstanding?
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