Financial Management: Theory & Practice (MindTap Course List)
Financial Management: Theory & Practice (MindTap Course List)
15th Edition
ISBN: 9781305632295
Author: Eugene F. Brigham, Michael C. Ehrhardt
Publisher: Cengage Learning
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Chapter 22, Problem 5Q
Summary Introduction

To describe:

APV model is suitable for changing capital structure during forecast period.

Introduction:

Adjusted Present Value (APV) defines the net present value of a venture when venture is financed by equity with present value of financial assistances. It is a method of evaluation of investments.

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