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Compute the present value of interest tax shields generated by these three debt issues. Consider corporate taxes only. Assume that the marginal tax rate
Compute the present value of interest tax shields generated by these three debt issues. Consider corporate taxes only. Assume that the marginal tax rate is T = 0.30. a. A $1,300, one-year loan at 10%. Note: Do not round intermediate calculations. Round your answer to 2 decimal places. b. A four-year loan of $1,300 at 10%. Assume no principal is repaid until maturity. Note: Do not round intermediate calculations. Round your answer to 2 decimal places. c. A $1,300 perpetuity at 9%. a. Present value b. Present value c. Present value
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