Question
A company has an un-leveraged value of 3,000,000 and a debt of 300,000. If the company is subject to a corporate tax rate of 0.30,
A company has an un-leveraged value of 3,000,000 and a debt of 300,000. If the company is subject to a corporate tax rate of 0.30, and investors in the company are subject to a tax rate of 0.05 on equity income and 0.10 on debt income, what is the company's value?
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Principles of economics
Authors: N. Gregory Mankiw
6th Edition
978-0538453059, 9781435462120, 538453052, 1435462122, 978-0538453042
