Question
Assume that your fathers business has a total market value of $300.4 billion and a marginal tax rate of 35%. If it permanently changes its
Assume that your fathers business has a total market value of $300.4 billion and a marginal tax rate of 35%. If it permanently changes its leverage from no debt by taking on new debt in the amount of 13% of its current market value, what is the present value of the tax shield your dads bushiness will create?
______ billion.
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International Finance Putting Theory Into Practice
Authors: Piet Sercu
1st edition
069113667X, 978-0691136677
