Business, 19.03.2020 19:16, marifermolina

Assume an unlevered firm changes its capital structure to include $100,000 in permanent debt at a 7% interest rate. The tax rate is 35%. According to MM I with taxes, the value of the firm will increase by due to this change in its capital structure.

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Assume an unlevered firm changes its capital structure to include $100,000 in permanent debt at a 7%...