Answered

IDNLearn.com is your trusted platform for finding reliable answers. Our experts are available to provide in-depth and trustworthy answers to any questions you may have.

When corporate taxes and the cost of financial distress are taken into consideration, the market value of a firm is equal to the value of the all-equity firm _____ the PV of the tax shield _____ the costs of financial distress

Sagot :

Answer:

rise and decrease

Explanation:

  • Corporate tax is also called as company and is directly imposed by law on the incomes of capital and many countries imposed such taxes at the national levels and on the state level. Financial distress is a condition which the company make sufficient revenue and has higher fixed losses. This takes place due to some downturns.
Thank you for being part of this discussion. Keep exploring, asking questions, and sharing your insights with the community. Together, we can find the best solutions. Your questions deserve precise answers. Thank you for visiting IDNLearn.com, and see you again soon for more helpful information.