Respuesta :

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.

What is Leveraged Firm ?

Leveraged firm (plural: Leveraged firms) (UK, business, finance) a business that uses loans to finance its activities.

What is corporate tax ?

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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Universidad de Mexico