Question
A firm currently has total debt equal to $84 millions of dollars. They are considering changing that to a total amount of debt of $102.
A firm currently has total debt equal to $84 millions of dollars. They are considering changing that to a total amount of debt of $102. If they implement this change, what would be the change in the present value of the tax shield? The firm's tax rate is 32%, while the interest on debt is 6%. Enter your answer in millions of dollars, without decimals.
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Fundamentals Of Financial Management
Authors: Eugene F. Brigham, Joel F. Houston
Concise 10th Edition
1337902578, 978-1337902571
