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EpiscoWhat EpiscoWhat
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Posts: 268
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6 years ago
Suppose that BBB pays corporate taxes of 35% and that shareholders expects the change in debt to be permanent.  Assuming that capital markets are perfect except for the existence of corporate taxes, the share price for BBB after this announcement is closest to:
A) $10.00
B) $10.85
C) $8.60
D) $11.40
Textbook 
Corporate Finance: The Core

Corporate Finance: The Core


Edition: 4th
Authors:
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EgorGruzdevEgorGruzdev
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6 years ago
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