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The value of a project to the firm can be thought of as the value of the project to an unlevered firm (NPV) plus the
The value of a project to the firm can be thought of as the value of the project to an unlevered firm (NPV) plus the present value of the financing side effects (NPVF). Which of the following is NOT a side effect of financing?
A. | The Tax Shield to Ordinary Dividends | |
B. | The Tax Subsidy to Debt | |
C. | The Costs of Financial Distress | |
D. | Subsidies to Debt Financing | |
E. | The Costs of Issuing New Securities |
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