Multiple Choice
Given the following information, leverage will add how much value to the unlevered firm per pound of debt?
Corporate tax rate: 34%
Personal tax rate on income from bonds: 10%
Personal tax rate on income from equities: 50%
A) £-0.050
B) £-0.188
C) £0.367
D) £0.633
E) None of the above.
Correct Answer:
Verified
Correct Answer:
Verified
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