When corporate taxes and the cost of financial distress are taken into consideration, the market value of a firm is equal to the value of the all-equity firm _ the PV of the tax shield _ the costs of financial distress

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06-07-2021
Business

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When corporate taxes and the cost of financial distress are taken into consideration, the market value of a firm is equal to the value of the all-equity firm _ the PV of the tax shield _ the costs of financial distress

Sagot :

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bratislava bratislava · Answer 1 · 2021-07-12T00:00:55-04:00

bratislava bratislava

12-07-2021

Answer:

rise and decrease

Explanation:

Corporate tax is also called as company and is directly imposed by law on the incomes of capital and many countries imposed such taxes at the national levels and on the state level. Financial distress is a condition which the company make sufficient revenue and has higher fixed losses. This takes place due to some downturns.

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