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: 20%
Personal tax rate on income from shares: 30%
A) £-0.050
B) £ 0.006
C) £ 0.246
D) £ 0.340
E) £ 0.423
Correct Answer:
Verified
Correct Answer:
Verified
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