Question
In a special tax structure, equity income is taxed at 27 %, debt income is taxed at 28 %, and corporate tax rate is 32
In a special tax structure, equity income is taxed at 27%, debt income is taxed at 28%, and corporate tax rate is 32%. How much value per dollar of debt will leverage add to a firm that is currently unlervered?
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Fundamentals Of Financial Institutions Management
Authors: Marcia Cornett, Anthony Saunders
1st Edition
0256253676, 9780256253672
