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Hey could someone help me with this problem and provide detail on how you were able to solve it. Your firm currently has $92 million
Hey could someone help me with this problem and provide detail on how you were able to solve it.
Your firm currently has $92 million in debt outstanding with a 9% interest rate. The terms of the loan require it to repay $23 million of the balance each year. Suppose the marginal corporate tax rate is 25%, and that the interest tax shields have the same risk as the loan. What is the present value of the interest tax shields from this debt? The present value of the interest tax shields is million (Round to two decimal places) Step by Step Solution
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