Discuss tax neutrality

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1. If the present value of an ordinary, 8-year annuity is $8,900 and interest rates are 10.0 percent, what’s the present value of the same annuity due? (Round your answer to 2 decimal places.)

2. How do you see the capital structures and associated pricing change in the future comparing to the Capital Structure Theory: Beyond the Modigliani and Miller Models?

3. Discuss “tax neutrality”?

Reference no: EM131852627

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