Question: Could you please help me explain this e) In the absence of perfect capital markets, how might the market values of levered and unlevered firms

Could you please help me explain this

e) In the absence of perfect capital markets, how might the market values of levered and unlevered firms be affected by i. taxation (5 marks) ii. costs of financial distress and bankruptcy (5 marks) iii. information asymmetries between company insiders and outside investors

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