In finance, as in accounting, the two sides of the balance sheet must be equal.In the previous
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Question:
In finance, as in accounting, the two sides of the balance sheet must be equal.In the previous problem, we valued the asset side of the balance sheet.To value the other side, we must value the debt and the equity, and then add them together. As the firm levers up, how does the increase in value get apportioned between creditors and shareholders?
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