Interest tax shield benefit: Legitron Corporation has $350 million of debt outstanding at an interest rate of

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Interest tax shield benefit: Legitron Corporation has

$350 million of debt outstanding at an interest rate of 9 percent. What is the dollar value of the tax shield on that debt, just for this year, if Legitron is subject to a 27 percent marginal tax rate?

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Fundamentals Of Corporate Finance

ISBN: 9781119795438

5th Edition

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

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