Lecture Notes on Time Value of Money

16.13 The market value of the firm will change by the difference in the value of the firm with or without leverage. The Miller Model is. The difference in the value of the firm is , which is simply the second term of the Miller Model. For OPC that difference is [1 - (1 - 0.35) / (1 - 0.10)] $2 million = $555,555.56. 16.14 a. ................
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