In the Modigliani and Miller world where we now assume that taxes exis
In the Modigliani and Miller world where we now assume that taxes exist, and that interest payments are tax deductible for firms, then which of the following statements is TRUE?
A) VL = VU – Dt
B) VU = VL + Dt
C) VL = VU + Dt
D) VU = VL – Dt
ANSWER
C
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