Unformatted text preview: If there are no personal or corporate taxes, then T c = T s = T d = 0, and Miller’s model simplifies to V L = V U , Which is the same as in MM’s 1958 model, which assumed zero taxes. If there are corporate taxes, but no personal taxes, then T s = T d = 0, and Miller’s model simplifies to V L = V U + T C D, Which is the same as MM obtained in their 1963 article, which considered only corporate taxes. Mini Case: 17 - 20...
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- Spring '08
- Leverage, td, personal tax rate