This is a preview. Sign up to view the full content.
7. Which of the following statements is true? I.M&M's Proposition I corrected for the inclusion of corporate income taxes is expressed as VL = VU + D*(1-TC). II. The positive value to the firm by adding debt to the capital structure in the presence of corporate taxes is due to the tax shield resulting from extra cash flow going to the investors of the firm rather than the tax authorities.
As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.
Temple University Fox School of Business ‘17, Course Hero Intern
I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.
University of Pennsylvania ‘17, Course Hero Intern
The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.