QUESTION 3 Ford expects to earn a free cash flow of $100, starting in 1 year, forever. The discount rate on the assets of the firm is 18%. Further, Ford has issued debt of $1,000 at an interest rate of 5%. Ford will keep its Debt/Equity ratio fixed, so that as the firm does well (poorly), its level of debt will increase(decrease). The cost of debt and interest rate will remain at 5% no matter how much debt Ford raises. Finally, Ford has a tax rate of 30%. What is the present value of Ford's interest tax shield? 83 300 15 C 0 10 points Save Answer QUESTION 2 Ford expects to earn a free cash flow of $100, starting in 1 year, forever. The discount rate on the assets of the firm is 18%. Further, Ford has issued debt of $1,000 at an interest rate and yield-to-maturity of 5%. Ford will perpetually roll this $1,000 in debt over, so that it always has a constant $1,000 in debt forever and always expects to pay 5% interest on this debt. Finally, Ford has a tax rate of 30%. What is the present value of Ford's interest tax shield? 30 C 15 C 0 300 O 10 points Save