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Trade-off Theory of Debt (incorporating taxes, bankruptcy costs & agency costs) VL=VU+PV( Tax shields )PV( Bankruptcy costs )PV( Agency costs ) Trade-off Theory of Debt

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Trade-off Theory of Debt (incorporating taxes, bankruptcy costs \& agency costs) VL=VU+PV( Tax shields )PV( Bankruptcy costs )PV( Agency costs ) Trade-off Theory of Debt (incorporating taxes \& bankruptcy costs) VL=VU+PV( Tax shields )PV( Bankruptcy costs ) Trade-off Theory of Debt (incorporating taxes, bankruptcy costs \& agency costs) VL=VU+PV( Tax shields )PV( Bankruptcy costs )PV( Agency costs ) Trade-off Theory of Debt (incorporating taxes \& bankruptcy costs) VL=VU+PV( Tax shields )PV( Bankruptcy costs )

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