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Suppose the Risk-Free Interest Rate Is 4

Question 91

Multiple Choice

Suppose the risk-free interest rate is 4%.If Nielson borrows $150 million today at this rate and uses the proceeds to pay an immediate cash dividend,then according to MM,the market value of its equity just alter the dividend is paid would be closest to:


A) $0 million
B) $150 million
C) $250 million
D) $400 million

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