Question
A company has a WACC equal to 12.45%, a constant and perpetual expected EBITDA equal to 150,000 Euro, an unlevered return on equity of 14.75%
A company has a WACC equal to 12.45%, a constant and perpetual expected EBITDA equal to 150,000 Euro, an unlevered return on equity of 14.75% and it keeps a constant debt-to-equity ratio. If the tax rate is equal to 34% and the assets are fully depreciated, what is the value of the interest rate tax shield?
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Taxes And Business Strategy A Planning Approach
Authors: Myron Scholes, Mark Wolfson, Merle Erickson, Michelle Hanlon
5th Edition
132752670, 978-0132752671
