Question
Assume that Microsoft has a total market value of $ 304.8 billion and a marginal tax rate of 35 %. If it permanently changes its
Assume that Microsoft has a total market value of $ 304.8 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 12.6 % of its current market value, what is the present value of the tax shield it will create?
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Financial Management Core Concepts
Authors: Raymond M Brooks
3rd edition
133866696, 978-0133866698
