The Federal corporate tax rate currently is 21%. If a company with an enterprise value of $3billion has $1billion of debt paying 6%, and plans to have this debt forever, and if the tax rate is...


The Federal corporate tax rate currently is 21%.  If a company with an
enterprise value
 of $3billion has $1billion of debt paying 6%, and plans to have this debt forever, and if the tax rate is increased to 26%, according to Miller & Modigliani, how does this change impact the enterprise value of this company? Provide a % change.



Jun 04, 2022
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