If the value of the unlevered firm with taxes is 171m and the levered firm has 111m of debt, what the value of the levered firm assuming a tax rate of 40%. Assume the firms are identical in every way except for capital structure. Show your answer in millions notation to two decimal places. (i.e., $500,000 would be 0.50.)

 What is the gain from taxes under Miller if the firm has $153m of debt, the corporate tax rate is 40%, the personal tax rate on equity is 15%, and the personal tax rate on debt is 32%? Show your answer in millions notation to two decimal places. (i.e., $500,000 would be 0.50.)

Answer rating: 100% (QA)

To calculate the value of the levered firm with taxes we can use the proposition by Modigliani and M... View the full answer