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"Consider a all-equity firm with 10M shares priced at $20 each. You have $1,000 to...

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Finance

"Consider a all-equity firm with 10M shares priced at $20 each. You have $1,000 to invest in the shares of this firm but you would prefer if the firm had 35% leverage. How can you create an equivalent home-made leverage. Answer - "borrow $538 and buy $1,538 worth of shares"

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