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Which One of These Represents the Difference Between the Value

Question 32

Multiple Choice

Which one of these represents the difference between the value of a levered and an unlevered firm?

A) R₀ - R_S
B) R_S × t_cB
C) V_U + R × t_cB
D) (B / S) (1 - t_c) ( R₀ - R_S)
E) t_cB

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