Question
LCMS Industries has $70 million in debt outstanding. The firm will pay only interest on this debt (the debt is perpetual). LCMS' marginal tax rate
LCMS Industries has $70 million in debt outstanding. The firm will pay only interest on this debt (the debt is perpetual). LCMS' marginal tax rate is 35% and the firm
pays a rate of 8% interest on its debt. Assuming that the risk is the same as the loan, the present value of LCMS' interest tax shield is closest to:
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Finance And Control For Construction
Authors: Chris March
1st Edition
0415371155, 978-0415371155
