Question
The current value of a firm is 698,600 dollars and it is 100% equity financed. The firm is considering restructuring so that it is 30%
The current value of a firm is 698,600 dollars and it is 100% equity financed. The firm is considering restructuring so that it is 30% debt financed. If the firm's corporate tax rate is 0.7, what will be the new value of the firm under the MM theory with corporate taxes but no possibility of bankruptcy.
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Entrepreneurial Financial Management An Applied Approach
Authors: Jeffrey R Cornwall, David O Vang, Jean M Hartman
5th Edition
0367335417, 978-0367335410
