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Leverage Models

Modigliani-Miller including Taxes

Modigliani-Miller including Taxes

The value of a levered firm equals the value of an unlevered firm plus the tax rate times the value of debt.

Source

    Boundless vets and curates high-quality, openly licensed content from around the Internet. This particular resource used the following sources:

    "Modigliani–Miller theorem."
    http://en.wikipedia.org/wiki/Modigliani%E2%80%93Miller_theorem Wikipedia GNU FDL.

Related Terms

  • asymmetric information
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