Question
Assuming no personal taxes, if Duffy were to issue $75 million in perpetual debt at 7%, but this would generate an expected present value of
Assuming no personal taxes, if Duffy were to issue $75 million in perpetual debt at 7%, but this would generate an expected present value of - $1 million in financial distress costs, what is the total present value of the tax shield and financial distress costs
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Principles of Managerial Finance
Authors: Lawrence J. Gitman, Chad J. Zutter, Wajeeh Elali, Amer Al Roubaix
Arab World Edition
1408271583, 978-1408271582
