2 Under what conditions will the firm be indifferent between issuing equity or debt? The firm will...

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2 Under what conditions will the firm be indifferent between issuing equity or debt?

The firm will be indifferent if the cash flow to shareholders equals the cash flow to bondholders. That is, the firm is indifferent when:

( 1 −  t c )  ×  ( 1 −  t E )  = 1 −  t D (18.7)

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Corporate Finance

ISBN: 9781526848093

4th Edition

Authors: David Hillier

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Question Posted: Jul 19, 2024 06:02 PM

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2 Under what conditions will the firm be indifferent between issuing equity or debt? The firm will...

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Corporate Finance

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