Question
Company A has $14605245 in permanent debt outstanding. The firm will pay interest only on this debt. The firm's marginal tax rate is expected to
Company A has $14605245 in permanent debt outstanding. The firm will pay interest only on this debt. The firm's marginal tax rate is expected to be 48% for the foreseeable future. Suppose that the firm pays interest of 6.15% per year on its debt.
What is the annual interest tax shield?
Please show answer after decimals as well.
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Extinction Governance Finance And Accounting
Authors: Jill Atkins, Martina Macpherson
1st Edition
0367492989, 978-0367492984
