Question
Assume that Microsoft has a total market value of $ 303 billion and a marginal tax rate of 35 %. If it permanently changes its
Assume that Microsoft has a total market value of $ 303 billion and a marginal tax rate of 35 %. If it permanently changes its leverage from no debt by taking on new debt in the amount of 12.8 % of its current marketvalue, what is the present value of the tax shield it willcreate?
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Finance Applications and Theory
Authors: Marcia Cornett
4th edition
1259691411, 978-1259691416
