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Part III Valuing Real Assets

Part III Valuing Real Assets. Chapter 13 Corporate Taxes and the Impact of Financing on Real Asset Valuation. Assets Debt Tax Shield (TX) T c D Unlevered Assets (UA) D + E - T c D. Liabilities and Equity Debt D Equity E.

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Part III Valuing Real Assets

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  1. Part III Valuing Real Assets

  2. Chapter 13 Corporate Taxes and the Impact of Financing on Real Asset Valuation

  3. Assets Debt Tax Shield (TX) TcD Unlevered Assets (UA) D + E - TcD Liabilities and Equity Debt D Equity E Exhibit 13.1: Balance Sheet for a Firm with Leverage When Debt Interest Is Corporate Tax Deductible

  4. Exhibit 13.2: Sources of Shareholder Value

  5. Exhibit 13.3: The Unlevered Cash Flows and Debt Tax Shields for Acme Industries Note: r DS represents the promised interest rate on the senior debt and r DJ is the promised interest rate on the junior subordinated debt.

  6. Exhibit 13.4: WACC, Cost of Equity, and Cost of Debt vs. With No Taxes

  7. Exhibit 13.5: WACC, Cost of Equity, and Cost of Debt vs. with Corporate Taxes

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