Question
Cardinal Corporation has $200,000 of debt in the form an Interest Only Note bearing an 8% interest rate. Assume that the note can be refinanced
Cardinal Corporation has $200,000 of debt in the form an Interest Only Note bearing an 8% interest rate. Assume that the note can be refinanced in perpetuity at the same interest rate. If Cardinal has a 20% tax rate, what is the value of the Interest Tax Shield.
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The Handbook Of Equity Derivatives
Authors: Jack Clark Francis, William W. Toy, J. Gregg Whittaker
1st Edition
0471326038, 978-0471326038
