Question
Uriah Inc. is financed with 100% equity and 0% debt in market value terms. In a capital market with taxes but no other imperfections (no
Uriah Inc. is financed with 100% equity and 0% debt in market value terms. In a capital market with taxes but no other imperfections (no bankruptcy costs, no financing frictions), if Uriah produces substantial positive profits and decides to issue new bonds to repurchase shares of stock, what will be the most likely impact to the value of the firm?
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Fundamentals Of Investments Valuation And Management
Authors: Bradford D Jordan, Thomas W. Miller Jr., Steven D. Dolvin
6th Edition
0073530719, 9780073530710
