Question
Legitron Corporation has $421 million of debt outstanding at an interest rate of 8 percent. What is the dollar value of the tax shield on
Legitron Corporation has $421 million of debt outstanding at an interest rate of 8 percent. What is the dollar value of the tax shield on that debt, just for this year, if Legitron is subject to a 35 percent marginal tax rate.
| Value of tax shield |
$????
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Financial Management Principles And Practices
Authors: Sudhindra Bhat
2nd Edition
8174465863, 978-8174465863
