stion 28 ABC Corp. is currently a firm with a debt-to-equity ratio of 2/3, a...
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stion 28 ABC Corp. is currently a firm with a debt-to-equity ratio of 2/3, a WACC of 15% and a cost of debt of 6% which is currently risk-free. It is markets with no taxes. Suppose ABC reduces its debt-equity ratio is 1/3. What will be the expected return of equity after this transactio 17% 15% 14% 16% 18% y risk-free. It is considering reducing its leverage by issuing more shares and paying back some debt. Assume perfect capital r this transaction
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