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  3. Study Set
    Mergers Acquisitions
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    Exam 14: Highly Leveraged Transactions: Lbo Valuation and Modeling Basics
  5. Question
    The Adjusted Present Value Method Implies That the Firm Should
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The Adjusted Present Value Method Implies That the Firm Should

Question 53

Question 53

True/False

The adjusted present value method implies that the firm should optimally use 100% debt financing to take maximum advantage of the tax shield created by the tax deductibility of interest.

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