jthayer940 jthayer940
  • 10-11-2022
  • Business
contestada

Walkrun Inc. is unlevered and has a value of $400 billion. An otherwise identical but levered firm finances 45% of its capital structure with debt at a 6% interest rate. No growth is expected. Assume the corporate tax rate is 25%. Use the MM model with corporate taxes to determine the value of the levered firm

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