The calculation of a leveraged company's worth in the context of corporate taxes
Value of Leveraged Firm = Value of Unlevered Firm + Tax Benefit of Debt.
Leveraged firm (plural: Leveraged firms) (UK, business, finance) a business that uses loans to finance its activities.
A corporate tax, often known as a corporation tax or company tax, is a type of direct tax levied against the profits or assets of corporations or other similar types of legal entities. Such taxes are common in many nations, and they might even be imposed at the state or local levels.
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