Question
Bay Transport Systems (BTS) currently has $ 45$45 million in debt outstanding. In addition to 9.0 %9.0% interest, it plans to repay 5 %5% of
Bay Transport Systems (BTS) currently has $ 45$45 million in debt outstanding. In addition to 9.0 %9.0% interest, it plans to repay 5 %5% of the remaining balance each year. If BTS has a marginal corporate tax rate of 38 %38%, 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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Advances In Financial Machine Learning
Authors: Marcos Lopez De Prado
1st Edition
1119482089, 978-1119482086
