Quiz Ch 19 – Modigliani-Miller Formula for After-Tax Discount Rate with Fixed Perpetual Debt

Principles of Corporate Finance

Brealey, Myers, and Allen

13th Edition

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What is the expression for the after-tax discount rate in the Modigliani-Miller (MM) formula when dealing with fixed perpetual debt?

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  • Search Terms: a) (mm) + = after-tax by case debt, discount fixed for formula given is modigliani-miller of perpetual r( r/( rate, rmm tcd/v). tcd/v). b) tcd/v). c) tcd/v). d) the −
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