Session 21: Optimal Financing Mix V - Alternate Approaches

[@parisasahraei1686]

thank for your explanation. I would like to know where can I find Altman estimations about probability of bankruptcy. I searched a lot but unfortunately can't find it.

[@mapa5497]

Sir, I couldnt well understand multiple regressions.. if any book points out the same, please write it down too.

[@ankitdebnath4247]

why isn't unlevered firm value is the one when the debt is 0 percentage?

[@tomaszguta]

Thank you Professor for this amazing content :) I was wondering at what interest rate one would discount the tax benefit that arises from adding debt to the firms capital structure - in order to arrive at the PV of thus tax benefit (slide at 2min38sec). The cost of equity (CoE)? Other available market return rate ? Also: Why are we ADDING the (E)Bankruptcy Cost back to arrive at the Unlevered Firm value - the lack of debt should rather eliminate this type of cost, not increase it (?).