Question
A company has an un-leveraged value of 5,000,000 and debt 300,000.If the company is subject to a corporate tax rate of 0.35, and investors in
A company has an un-leveraged value of 5,000,000 and debt 300,000.If the company is subject to a corporate tax rate of 0.35, and investors in the company are subject to a tax rate of 0.40 on equity income and 0.35 on debt income, what is the company's value?
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Principles Of Managerial Finance
Authors: Lawrence J. Gitman, Chad J. Zutter
13th Edition
9780132738729, 136119468, 132738724, 978-0136119463
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