22. Tax Shields. Look back to Table 3-3 where we provided a summary 2006 income statement for...

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22. Tax Shields. Look back to Table 3-3 where we provided a summary 2006 income statement for PepsiCo, Inc. If the tax rate is 35%, what is PepsiCo's annual interest tax shield? What is the present value of the annual tax shield if the company plans to maintain its current debt level indefinitely? Assume a discount rate of 8%. (LO2)

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Fundamentals Of Corporate Finance

ISBN: 9780073382302

6th Edition

Authors: Richard A Brealey, Stewart C Myers, Alan J Marcus

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