Question
True or false. In DCF valuation, a company can increase its equity value by borrowing more money provided that the after-tax cost of debt exceeds
True or false.
In DCF valuation, a company can increase its equity value by borrowing more money provided that the after-tax cost of debt exceeds the return on capital. (Assume all other inputs are fixed.
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Entrepreneurial Finance
Authors: J. Chris Leach, Ronald W. Melicher
7th Edition
0357442040, 978-0357442043
