The value of a project to a levered firm is equal to the unlevered firm project value plus the:
A) costs of financial distress, minus floatation costs, plus taxes, plus debt financing subsidies.
B) tax subsidies, minus floatation costs, plus debt financing subsidies.
C) tax subsidies, plus floatation costs, minus financial distress costs, plus debt financing subsidies.
D) taxes paid, minus floatation costs, plus financial distress costs, plus debt financing subsidies.
Correct Answer:
Verified
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