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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.
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Entrepreneurial Finance
Authors: J. Chris Leach, Ronald W. Melicher
2nd Edition
0324289235, 9780324289237
