15.4. Hot Shot Uranium Mines is issuing stock for the first time and needs to determine an...

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15.4. Hot Shot Uranium Mines is issuing stock for the first time and needs to determine an initial proportion of debt and equity. In its first years, the firm will have substantial tax write-offs as it amortizes the uranium in the mine. In later years, however, it will have high taxable earnings. Make a proposal regarding the firm’s optimal capital structure and future payout policy.

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Financial Markets And Corporate Strategy

ISBN: 9780071157612

2nd Edition

Authors: Mark Grinblatt, Sheridan Titman

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