Zuliaca Inc. has a market value of $350,000,000. Zuliaca currently has no debt but they are considering buying back shared through the issuance of $140,000,000 in new debt. According to M&M with taxes, what would be the value of Zuliaca AFTER they issue the debt if their effective tax rate is 30%.

Answer rating: 100% (QA)

The value of Zuliaca Inc after they issue the debt can be calculated using the ModiglianiMiller MM theorem with taxes According to the MM theorem the ... View the full answer