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Use the Following Information to Answer the Question(s)below

question 78

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Use the following information to answer the question(s) below.
d'Anconia Copper is an all-equity firm with 60 million shares outstanding,which are currently trading at $20 per share.Last month,d'Anconia announced that it will change its capital structure by issuing $300 million in debt.The $200 million raised by this issue,plus another $200 million in cash that d'Anconia already has,will be used to repurchase existing shares of stock.Assume that capital markets are perfect.
-Suppose you are a shareholder in d'Anconia Copper holding 300 shares,and you disagree with the decision to lever the firm.You can undo the effect of this decision by:

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Definitions:

Complex Solutions

Solutions to equations that involve complex numbers, which include a real component and an imaginary component.

Real Solutions

Real solutions refer to the solutions of an equation that are real numbers, as opposed to complex or imaginary numbers.

Quadratic Equation

An equation of the form ax^2 + bx + c = 0, where a, b, and c are constants, and x is the variable.

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