Question
Bay Transport Systems (BTS) currently has $35 million in debt outstanding. In addition to 8.0% ninterest, it plans to repay 5% of the remaining balance
Bay Transport Systems (BTS) currently has $35 million in debt outstanding. In addition to 8.0% ninterest, it plans to repay 5% of the remaining balance each year. If BTS has a marginal corporate tax rate of 30%, and if the interest tax shields have the same risk as the loan, what is the present value of the interest tax shield from the debt?
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Forecasting And Predictive Analytics With Forecast X
Authors: Barry Keating, J. Holton Wilson, John Solutions Inc.
7th International Edition
1260085236, 9781260085235
