Assume the following values: corporate tax rate = 0.28, personal tax rate on debt = 0.15, personal tax rate on equity = 0.05, unleveraged value for Miller = $100,000,000, debt value for Miller  = $50,000,000, unleveraged equity rate of return = 11.00%, cost of debt = 6.62%, and leveraged equity rate of return = 13.28%. What is the gain to leverage using the Miller equation?

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on 005 07 Corporate Tax Rate 028 Personal tax Rate andebt 015 Person... View the full answer