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3. Problem 22-03 (Tax Shield Value) eBook Problem Walk-Through Tax Shield Value Wilde Software Development has a 13% unlevered cost of equity. Wilde forecasts the
3. Problem 22-03 (Tax Shield Value) eBook Problem Walk-Through Tax Shield Value Wilde Software Development has a 13% unlevered cost of equity. Wilde forecasts the following interest expenses, which are expected to grow at a constant 5% rate after Year 3. Wilde's tax rate is 25%. Year 1 Year 2 Year 3 $70 $85 $100 Interest expenses a. What is the horizon value of the interest tax shield? Do not round intermediate calculations. Round your answer to the nearest cent. b. What is the total value of the interest tax shield at Year 0? Do not round intermediate calculations. Round your answer to the nearest cent
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