ABF Corp. has $125,000 of debt outstanding that is selling at par and has a coupon rate of 7 percent. If the tax rate is
ABF Corp. has $125,000 of debt outstanding that is selling at par and has a coupon rate of 7 percent. If the tax rate is 21 percent, what is the present value of the tax shield on debt?
| $1,838 | ||
| $26,250 | ||
| $20,738 | ||
| $28,980 | ||
| $8,750 |
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Authors: Judith J. Baker, R.W. Baker
4th Edition
1284029867, 978-1284029864
