Question
The value of a levered firm, given permanent debt D and a corporate tax T C , is: Value of levered firm = value of
The value of a levered firm, given permanent debt D and a corporate tax TC, is:
Value of levered firm = value of unlevered firm + (TC) (D).
But this assumes zero costs of financial distress.
true/false?
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Real Estate Finance
Authors: John P. Wiedemer, Keith J. Baker
9th edition
324181426, 324181425, 978-0324181425
