A company takes on new debt, and uses the money to repurchase own shares. (Assume...

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A company takes on new debt, and uses the money to repurchase own shares. (Assume Modigliani-Miller propositions with no taxes), What will happen? A The shares risk and return will be unchanged. B. The shares risk and return decrease The shares risk and return increase. D Debt-to-equity ratio decreases

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