Jones Ltd had a market value of $400m and had no debt. The company has decided to issue $200m worth of non-maturing debt at an interest rate of 6%. The corporate tax rate is 30%. What is the value of the firm with leverage. Can you please show me the calculations.

Answer rating: 100% (QA)

To calculate the value of the firm with leverage we need to consider the impact of th... View the full answer