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Brute Force Cybernetics (BFC) has a forecast EBIT of $125,000 in perpetuity. BFCs ROE is 17% and its cost of debt is 12%. BFCs tax
Brute Force Cybernetics (BFC) has a forecast EBIT of $125,000 in perpetuity. BFCs ROE is 17% and its cost of debt is 12%. BFCs tax rate is 25%. If BFC has $200,000 in debt, what is the value of its tax-shield?
$34,000
$50,000
$6,000
$24,000
$31,250
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