Question
A companys value is 100 million euros (equity 50 and debt 50), and it decides to issue 20 million in debt to finance new investments.
A companys value is 100 million euros (equity 50 and debt 50), and it decides to issue 20 million in debt to finance new investments. If the corporate tax rate is 30%, and the interests and dividends are taxed at the personal level at the same new company value (V), equity value (E) and debt value (D)?
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The Certified Lease And Finance Professionals Handbook
Authors: Deborah Reuben, Certified Lease & Finance Professionals, Equipment Finance Industry Experts
6th Edition
171743388X, 978-1717433886
