Solution-Bankruptcy and agency costs

Bankruptcy and agency costs

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Reference no: EM131068141

What is the value of the tax shield if the value of the firm is $5 million, its value if unlevered would be $4.78 million, and the present value of bankruptcy and agency costs is $360,000?

a) $140,000
b) $220,000
c) $360,000
d) $580,000

Reference no: EM131068141

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Bankruptcy and agency costs

Reference no: EM131068141

Reference no: EM131068141

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