jesseemartinez22
25.12.2019 •
Business
Assume that mm's theory holds with taxes. there is no growth, and the $40 of debt is expected to be permanent. assume a 40% corporate tax rate.
a. how much of the firm's value is accounted for by the debt-generated tax shield?
b. how much better off will uf's a shareholder be if the firm borrows $20 more and uses it to repurchase stock? "
step 1:
tax rate - tc =
a. permanent debt - d =
b. additional debt - d =
step 2:
a. tax shield formula =
b. tax shield formula =
benefit to shareholders =
Solved
Show answers
More tips
- F Food and Cooking What s the Best Rice for Cooking Plov?...
- F Family and Home How to Remove Fading from Clothes: Tips and Tricks...
- F Food and Cooking How to Make Polendwitsa at Home?...
- F Family and Home Parents or Environment: Who Has the Most Influence on a Child s Upbringing?...
- P Philosophy Unbelievable stories of encounters with otherworldly forces...
- L Leisure and Entertainment How to Choose the Perfect Gift for Men on February 23rd?...
- H Health and Medicine How to Treat Whooping Cough in Children?...
- H Health and Medicine Simple Ways to Lower Cholesterol in the Blood: Tips and Tricks...
- O Other How to Choose the Best Answer to Your Question on The Grand Question ?...
- L Leisure and Entertainment History of International Women s Day: When Did the Celebration of March 8th Begin?...
Answers on questions: Business
- B Business a business purchases 1000 corncurls in june for $ 3.20. each 2200 widget are sold in september. calculate the slock evalution using both the lifo and fifo methods...
- B Business If another period of stagflation occurs and shifts the AS curve to the left in the economy, what would happen if an expansionary fiscal or monetary policy is used to stimulate the...
- B Business List the individual budgets of the master budget in the order in which they are prepared, with the first on top. Instructions Choice 1 of 4. Direct materials, Direct labor and Factory...
- B Business What describes the demand curve for a firm in a monopoly market? A. downward-sloping and identical to the market demand curve B. downward-sloping and to the left of the market demand...
- B Business Albert has high cholesterol and has seen a advertisement that seeks participants for a study of a new drug designed to reduce cholesterol levels in comparison to a placebo. What MUST...
- B Business The manager of the main laboratory facility at Center is interested in being able to predict the overhead costs each month for the lab. The manager believes that total overhead varies...
- B Business Can someone pls help ASAP pls...
- B Business Amy and Lester are partners in operating a store. Without consulting Amy, Lester enters into a contract to purchase $12,000 of merchandise for the store. Amy says she did not authorize...
- M Mathematics 3t-7=5t, then what does 6t=...
- M Mathematics How to solve 3sin^2x= cos^2x...
Ответ:
i don't know why it is like this