Suppose one of the inducements provided by Taiwan to Xidex to set up a local production facility

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Suppose one of the inducements provided by Taiwan to Xidex to set up a local production facility is a ten year, $12.5 million loan at 8%. The principal is to be repaid at the end of the tenth year. The market interest rate on such a loan is about 15%. With a marginal tax rate of 40%, how much is this loan worth to Xidex?

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Foundations Of Multinational Financial Management

ISBN: 9780470128954

6th Edition

Authors: Alan C Shapiro, Atulya Sarin

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