Question
Assume that Microsoft has a total market value of $297.5 billion and a marginal tax rate of 21% . If it permanently changes its leverage
Assume that Microsoft has a total market value of $297.5 billion and a marginal tax rate of 21% . If it permanently changes its leverage from no debt by taking on new debt in the amount of 12.9% of its current market value, what is the present value of the tax shield it will create?
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Technical Analysis Of Stock Trends
Authors: Robert D. Edwards, John Magee, W.H.C. Bassetti
8th Edition
0814406807, 978-0814406809
