This note explores the interaction between the use of debt and the value of the company and a brief look at the use of debt. It also introduces the concept of financial and operating leverage. In addition, it covers the impact of the use of debt in the presence of no taxes, corporate taxes only, and both personal and corporate taxes.
This Darden study. "Hide
by Robert M. Conroy Source: Darden School of Business 15 pages. Publication Date: March 29, 1991. Prod. #: UV0455-PDF-ENG
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