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  3. Study Set
    Mergers Acquisitions
  4. Exam
    Exam 14: Highly Leveraged Transactions: Lbo Valuation and Modeling Basics
  5. Question
    Using the Adjusted Present Value Method to Value a LBA
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Using the Adjusted Present Value Method to Value a LBA

Question 50

Question 50

True/False

Using the adjusted present value method to value a LBA assumes the total value of the firm is the present value of the firm's free cash flows to lenders plus the present value of future tax savings discounted at the firm's unlevered cost of equity.

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