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Modigliani and Miller's world of taxes.Roxy Broadcasting was originally an all-equity firm with a before-tax value of $ 15 comma 000 comma 000. Roxy now

Modigliani and Miller's world of taxes.Roxy Broadcasting was originally an all-equity firm with a before-tax value of $ 15 comma 000 comma 000. Roxy now pays taxes at a 20% rate.

What is the value of Roxy under the 45/55 debt-to-equity capital structure? Under the 55/45 capital structure?

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