Multiple Choice
Given the following information, leverage will add how much value to the unlevered firm per pound of debt?
Corporate tax rate: 30%
Personal tax rate on income from bonds: 20%
Personal tax rate on income from shares: 0%
A) £0.125
B) £0.472
C) £0.528
D) £0.825
E) None of the above.
Correct Answer:
Verified
Correct Answer:
Verified
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