Question: Perform instant experiments on whether changing various inputs causes an increase or decrease in the firms value / share and by how much. (a.) What

Perform instant experiments on whether changing various inputs causes an increase or decrease in the firm’s value / share and by how much.

(a.) What happens when the date 0 firm capital is increased?

(b.) What happens when the tax rate is increased?

(c.) What happens when the unlevered cost of equity capital is increased?

(d.) What happens when the riskfree rate is increased?

(e.) What happens when the infinite horizon growth rate of unlevered equity is increased?

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