Question: 22. When the quantity (1 Tc}(1 TpE) = (1 - Tp), then: The firm should hold no debt. The value of the levered firm is

22. When the quantity (1 Tc}(1 TpE) = (1 - Tp), then: The firm should hold no debt. The value of the levered firm is greater than the value of the unlevered firm. The tax shield on debt is offset by higher personal taxes paid on interest income. The firm should be financed by 100% equity. 9-9519

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