Recent Posts • Latest Topics • Unanswered Questions

Top Posters

Since Sunday

A

6

j

6

c

5

m

5

C

5

d

5

s

5

n

4

i

4

d

4

d

4

J

4

What would happen to a firm that uses an excessive amount of debt in a world with no taxes?

salonijainnn

wrote...

Go to Answer

Posts: 145

Rep:

2 months ago

What would happen to a firm that uses an excessive amount of debt in a world with no taxes?

What would happen to a firm that uses an excessive amount of debt in a world with no taxes?

▸ The value of the firm would increase because of the increase in the assets of the firm.

▸ The value of the firm would decrease because of the increase in the present value of distress costs.

▸ It is completely irrelevant to the size of the firm.

▸ The value of distress costs do not affect a firm in a tax-free world.

Textbook

Corporate Finance

Corporate Finance

Edition: 5^th

Author: Booth

Read 33 times

1 Reply

Replies

Answer verified by a subject expert

pigglyoink14

wrote...

#1

Posts: 155

Rep:

2 months ago

Sign in or Sign up in seconds to unlock everything for free

More solutions for this book are available here

Related Topics

Show More

salonijainnn Author

wrote...

2 months ago

Thanks for your help!!

mambah4

wrote...

Yesterday

You make an excellent tutor!

larrybrads

wrote...

2 hours ago

Thanks

Explore

Post your homework questions and get free online help from our incredible volunteers

727 People Browsing

Start New Topic Take the Tour CoursesNew Study Tools Topics Trending Browse by Textbook

Live Chat

AJAX Chat © blueimp.net Integrated with SMF

Related Images

2680

233

3589

Your Opinion

Previous poll results: Which industry do you think artificial intelligence (AI) will impact the most?

The Toxic Skin and Fungi Defense

Courses by Biology Forums

Bonobos, Chimpanzees, and the 98% DNA Link

Strange Ingredients Lurking in Doritos Chips

It's sore throat season, why does my mucus have red spots?

Ready to ask a question on Biology Forums? Try it out

Join Our Community

Biology Forums - Study Force is a free online homework help service catered towards college and high school students. Get homework help and answers to your toughest questions in biology, chemistry, physics, mathematics, engineering, accounting, business, humanities, and more. Master your assignments quickly with thousands of step-by-step solutions to countless textbook questions asked and answered by our members. If we don't have your question, don't worry. You can ask any homework question and get expert homework help in as little as two hours.

Our extensive online study community is made up of college and high school students, teachers, professors, parents and subject enthusiasts who contribute to our vast collection of study resources: textbook solutions, study guides, practice tests, practice problems, lecture notes, equation sheets and more. With our help, your homework will never be the same!

Join for free today

How is Biology Forums - Study Force different than tutoring?

Home Search Q & A Board Gallery Resource Library Blog Dictionary Chat	Quick Links Start a Topic Latest Topics Unanswered Questions Courses Study Tools Browse by Textbook	Social Facebook YouTube Community Stats Who's Online Trending Staff	Help About Us Take the Tour Study Tips Posting Guidelines Terms and Policies Contact Us
Biology Forums - Study Force © 2010-2024 \| Powered by SMF \| SMF © 2015, Simple Machines \| Sitemap Biology-Forums.com is not affiliated with any publisher. Book covers, title and author names appear for reference only.