Technical Question
This in reference to
https://www.wallstreetoasis.com/forums/intuitive-….
Basically they say that they are originally the owner of a company with 100% equity that is worth $1000MM, but when they borrow $500MM in debt, the company becomes 50% equity and 50 % debt. How is that possible, would it not be 67% equity and 33% debt now.
Purchased equity with the debt
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