The Modigliani-Miller (MM)formula for the after-tax discount rate,for the case of fixed perpetual debt,is given by:

Name: The Modigliani-Miller (MM)formula for the after-tax discount rate,for the case of fixed perpetual debt,is given by:
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The Modigliani-Miller theorem with taxes suggests that the cost of equity decreases with the tax shield from debt, which is represented by the formula r(1 - T_CD/V), where T_C is the corporate tax rate, D is the debt, and V is the firm's value.

The Modigliani-Miller (MM)formula for the After-Tax Discount Rate,for the Case