Question
BullsEye Corp. has $15 million of debt outstanding with an interest rate of 8% and a marginal tax rate of 20%. A new tax law
BullsEye Corp. has $15 million of debt outstanding with an interest rate of 8% and a marginal tax rate of 20%. A new tax law lowers the corporate tax rate to 15%, effective immediately. What is the change in the present value of thelifetimetax shield on the debt of BullsEye if it has no maturity?
A) Decrease by 750,000
B) Decrease by 60,000
IC) increase by 180,000
D) Increase by 2,250,000
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Succeeding in Business with Microsoft Excel 2013 A Problem Solving Approach
Authors: Debra Gross, Frank Akaiwa, Karleen Nordquist
1st edition
978-1285099149, 9781285963969, 1285099141, 1285963962, 978-1285715346
