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A firm has $11 million worth of debt which it plans to increase by 12% every year forever. In a world with taxes, but otherwise
A firm has $11 million worth of debt which it plans to increase by 12% every year forever. In a world with taxes, but otherwise perfect capital markets, what is the appropriate discount rate for the expected tax shields generated by the interest paid on this debt?
A. Re (equity)
B. Ra (return on assets)
C. Rd (debt)
D. WACC
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Technical Analysis Of Stock Trends
Authors: Robert D. Edwards, John Magee
6th Edition
1599180219, 978-0139043437
