The Modigliani-Miller (MM) formula for the after-tax discount rate, for the case of fixed perpetual debt, is given by
A) rMM = r(1 - TCD/V) .
B) rMM = r(1 + TCD/V) .
C) rMM = r/(1 - TCD/V) .
D) rMM = r/(1 + TCD/V) .
Correct Answer:
Verified
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