c. Now assume that Firms L and U are both subject to a 40% corporate tax rate.

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c. Now assume that Firms L and U are both subject to a 40% corporate tax rate.

Using the data given in part

b, repeat the analysis called for in b(1) and b(2)

under the MM model with taxes.

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Related Book For  book-img-for-question

Financial Management Theory And Practice

ISBN: 9781439078105

13th Edition

Authors: Eugene F. Brigham, Michael C. Ehrhardt

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