Given the Following Information,leverage Will Add How Much Value to the Unlevered

question 8

Multiple Choice

Given the following information,leverage will add how much value to the unlevered firm per pound of debt?
Corporate tax rate: 30%
Personal tax rate on income from bonds: 20%
Personal tax rate on income from shares: 0%

• A)£0.125
• B)£0.472
• C)£0.528
• D)£0.825
• E)None of the above.

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