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Complete the following sentence based on your understanding of the MM Model with Corporate Taxes: MM's model that included the existence of corporate taxes concluded
Complete the following sentence based on your understanding of the MM Model with Corporate Taxes: MM's model that included the existence of corporate taxes concluded that ____________ debt is the best way to capitalize a firm. Alumiscape Corp. has no debt, and its value is $700,000 million. Metallica Metals is otherwise identical but levered with $280,000 million in debt. Under the different models, what is the value of Metallica Metals if its corporate tax rate is 27%, the personal tax rate on equity is 8%, and the personal tax rate on debt is 26%
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