Characteristics that differentiate debt and equity in depth

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Reference no: EM132063443

1. In around 300 words Explain the relationship [if any] between the Efficient Market Hypothesis (EMH), the asymmetric view, and the Capital Assest Pricing Model (CAPM)

2. Describe two characteristics that differentiate debt and equity. in depth.

3. Hurley Corporation value of operations is equal to $500 Million after a recapitalization (the firm had no debt before the recap). It raised $200 Million in new debt and used this to buy back stock. Hurley had no short-term investments before or after the recap. After the recap, wd = 30%. What is the value of equity after the recap?

A. $300 Million

B. $350 Million

C. $400 Million

D. $450 Million

Reference no: EM132063443

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