Interest tax shield benefit: Springer Corp. has $250 million of debt outstanding at an interest rate of

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Interest tax shield benefit: Springer Corp. has $250 million of debt outstanding at an interest rate of 11 percent. What is the present value of the interest tax shield if the debt has no maturity and if Springer is subject to a 26 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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