A few finance questions
Hi everyone,
I just wondered if you could help me understand the following:
On the topic of tax shields:
-Do tax shields have any benefit for equity holders? The tax savings go to creditors via interest payments so I imagine the value of equity would be negatively affected. Nevertheless the EV increases. Can you provide further intuition on this...
On leveraged recaps:
-If I take out debt to pay a special dividend to public shareholders how large should the dividend be? I am not looking for a number just a method.
