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Business, 16.12.2019 23:31 deaklet

Consider two firms, with and without, that have identical assets that generate identical cash flows. without is an all-equity firm, with 1 million shares outstanding that trade for a price of $24 per share. with has 2 million shares outstanding and $12 million dollars in debt at an interest rate of 5%.according to mm proposition 1, the stock price for with is closest to: a) $8.00b) $24.00c) $6.00d) $12.00

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