Principles Of Corporate Finance 14th Edition Solutions Fixed – Limited

She titled it: principles_corp_fin_14e_solutions_ch18.md .

Problem 17.6a: VL = VU + Tc*D Wait — did you forget that debt is perpetual here? If interest is tax-deductible at 21%, the tax shield is 0.21 * $10M debt = $2.1M. So VL = $50M + $2.1M = $52.1M. (Book answer says 52.1 — good. But only if no growth. See p. 462.) Principles Of Corporate Finance 14th Edition Solutions