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Business, 03.01.2020 07:31 hinacat87

Which of the following statements concerning the compressed adjusted present value (apv) model is not correct
a. the value of a growing tax shield is greater than the value of a constant tax shield.
b. for a given d/s, the levered cost of equity is greater in the compressed apv model than the levered cost of equity under mm's original (with tax) assumptions.
c. for a given d/s, the wacc is greater in the compressed apv model than the wacc under mm's original (with tax) assumptions.

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Which of the following statements concerning the compressed adjusted present value (apv) model is no...
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