Learn and earn company is financed entirely by common stock


Learn and Earn Company is financed entirely by Common stock that is priced to offer a 20% expected return. If the company repurchases 50% of the stock and substitutes an equal value of debt yielding 8%, what is the expected return on the common stock after refinancing?

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Finance Basics: Learn and earn company is financed entirely by common stock
Reference No:- TGS0618426

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