Question
a WACC equal to 12.45%, a constant EBITDA equal to 150,000 Euro and an unlevered return on equity of 14.75%. the tax rate is equal
a WACC equal to 12.45%, a constant EBITDA equal to 150,000 Euro and an unlevered return on equity of 14.75%. the tax rate is equal to 34% and the assets are fully depreciated.
What is the value of the interest rate tax shield?
Answer is 123,994.28 Euro
I am not sure with the steps
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Financial Institutions Management A Risk Management Approach
Authors: Anthony Saunders, Marcia Millon Cornett
9th edition
1259717771, 1259717772, 9781260048186, 1260048187, 978-1259717772
