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How does a change in capital gains tax rates affect the firms value? Explain using the idea of levered versus unlevered firms. Explain how a
- How does a change in capital gains tax rates affect the firms value? Explain using the idea of levered versus unlevered firms.
- Explain how a business may decrease the firms value by using more debt to finance growth.
- Explain why the enterprise value of the firm adds debt versus subtracting it.
- Explain the difference between a firms beta (b) and the firms alpha (a).
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