4. Tax shields (S17-1) Look back at the Johnson & Johnson example in Section 17-1. Suppose Johnson...
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4. Tax shields (S17-1) Look back at the Johnson & Johnson example in Section 17-1. Suppose Johnson & Johnson increases its long-term debt to $50 billion. It uses the additional debt to repurchase shares. Reconstruct Table 17.4B with the new capital structure. How much additional value is added for Johnson & Johnson shareholders if the table’s assumptions are correct?
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Related Book For 
Principles Of Corporate Finance
ISBN: 9781264080946
14th Edition
Authors: Richard Brealey, Stewart Myers, Franklin Allen, Alex Edmans
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