Abstract

Arnold and Eisemann (2008) developed an algorithm that calculates the value of long-term debt when long-term debt is considered the "plug" or "slack" term within a pro forma analysis. In this paper, the algorithm is presented in a slightly different form and adjusted for the use of a target mix of new debt and new stock.

Document Type

Article

Publication Date

2012

Publisher Statement

Copyright © 2012 Financial Education Association. This article first appeared in Advances in Financial Education 10, no. 1&2 (2012): 95-99.

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