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Business, 24.05.2021 14:00 denvontgekingice

ABC company is a levered firm and has a $96 million debt. The total market value of ABC's assets is $240 million. The company has $24 million of cash.
Calculate the new debt to equity ratio of the company if it is to repurchase $9.6
million of its shares.

A. 142.86%
B. 35.71%
C. 71.43%
D. 85.71%

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