Question
Braxton Enterprises currently has debt outstanding of $40 million and an interest rate of 8%. Braxton plans to reduce its debt by repaying $8 million
Braxton Enterprises currently has debt outstanding of
$40
million and an interest rate of
8%.
Braxton plans to reduce its debt by repaying
$8
million in principal at the end of each year for the next five years. If Braxton's marginal corporate tax rate is
35%,
what is the interest tax shield from Braxton's debt in each of the next five years?
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Project Finance
Authors: B Rajesh Kumar
1st Edition
3030967247, 978-3030967246
