CONTEMP. FINANCIAL MGT.-W/MINDTAP V3
14th Edition
ISBN: 9780357292839
Author: MOYER
Publisher: CENGAGE L
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Chapter 13, Problem 1QTD
Summary Introduction
To discuss: The Person M’s research outcome in the area of capital structure.
Expert Solution & Answer
Explanation of Solution
According to the person M’s research outcome the worth of a company is independent of its structure of capital in perfect capital markets condition with no income taxes. Though, when person M permit bankruptcy costs and income taxes to happen, they demonstrate a value-optimizing structure of capital that is fewer than 100 percentage of debt is reached.
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Chapter 13 Solutions
CONTEMP. FINANCIAL MGT.-W/MINDTAP V3
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