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Cycling & Co. has an investment opportunity that requires an investment of 26 today. The project has an infinite life. Corporate taxes are 25%. Assume
Cycling & Co. has an investment opportunity that requires an investment of 26 today. The project has an infinite life. Corporate taxes are 25%. Assume a Modigliani- Miller world, but with taxes (MM with relaxed assumptions). If the company plans to finance this investment with debt at a cost of 7% and plans to pay interest on its debt only, without ever changing the principal (i.e., it won't raise more debt or pay off the principal).
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Income Tax Fundamentals 2013
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
31st Edition
1111972516, 978-1285586618, 1285586611, 978-1285613109, 978-1111972516
