According to Millers (1977) paper, leverage does not increase firm value, even though interest expense on debt

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According to Miller’s (1977) paper, leverage does not increase firm value, even though interest expense on debt is tax deductible by corporations. Why?

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Taxes And Business Strategy A Planning Approach

ISBN: 9780132752671

5th Edition

Authors: Myron Scholes, Mark Wolfson, Merle Erickson, Michelle Hanlon

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Question Posted: Aug 06, 2015 02:38 AM

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According to Millers (1977) paper, leverage does not increase firm value, even though interest expense on debt

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In Millers world debt must pay a higher pretax return than equity because interest inco...View the full answer

Taxes And Business Strategy A Planning Approach

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