Finite Corp. has $250 million of debt outstanding at an interest rate of 11 percent. What is

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Finite Corp. has $250 million of debt outstanding at an interest rate of 11 percent. What is the present value of the debt tax shield if the debt will mature in five years (and no new debt will replace the old debt), assuming that Finite is subject to a 40 percent marginal tax rate?

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Fundamentals of corporate finance

ISBN: 978-0470876442

2nd Edition

Authors: Robert Parrino, David S. Kidwell, Thomas W. Bates

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