Subject category:
Finance, Accounting and Control
Published by:
Darden Business Publishing
Version: 05.1991
Length: 15 pages
Data source: Published sources
Abstract
This note explores the interaction between the use of debt and firm value and provides a brief perspective on the use of debt. It also introduces the notions 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. There is a Spanish version available ''UVA-F-0942-LAS''.
About
Abstract
This note explores the interaction between the use of debt and firm value and provides a brief perspective on the use of debt. It also introduces the notions 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. There is a Spanish version available ''UVA-F-0942-LAS''.