Assume that MM’s theory holds except for taxes. There is no growth, and the $80 of debt is expected to be
OP LU email}}) LU lib YTD SwapsySavedHelpSave & ExitHere are book – and market-value balance sheets of the United FrypanCompany:”Book – Value Balance SheetNet working capitalBB$Debt80Long- term assets70Equity20180$108Market – Value Balance Sheet88Net working capital$BBDebt*Long – term assets170Equity1202 0 02 80$Assume that MM’s theory holds except for taxes. There is no growth , andthe $80 of debt is expected to be permanent . Assume a 32% […]