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According to trade-off theory, the total value of a lovered firm equals the value of the firm without leverage plus the present value of the

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According to trade-off theory, the total value of a lovered firm equals the value of the firm without leverage plus the present value of the fax savings from debt, less the present value of financial distress costs V = VU. PV (Interest Tax Shield) - PV(Financial Distress Costa) V = levered value of the firm V unlevered value of the Arm According to trade-off theory, how is capital structure determined? (40 points) KAL

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