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Boutelle Homes has 4,800 bonds outstanding with a face value of $1,000 each and a coupon rate of 6.4 percent. Interest is paid semiannually. What
Boutelle Homes has 4,800 bonds outstanding with a face value of $1,000 each and a coupon rate of 6.4 percent. Interest is paid semiannually. What is the present value of the interest tax shield if the tax rate is 35 percent?
A. $1,498,800
B. $107,520
C. $172,400
D. $1,680,000
E.$106,020
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