Question
Rappaport Industries has 6,750 perpetual bonds outstanding selling for $2,000 each. The tax rate is 21 percent. What is the present value of the interest
Rappaport Industries has 6,750 perpetual bonds outstanding selling for $2,000 each. The tax rate is 21 percent. What is the present value of the interest tax shield?
A) $918,000
B) 4,131,000
C) $312,120
D) $2,835,000
E) $325,890
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Entrepreneurial Finance Venture Capital Deal Structure And Valuation
Authors: Janet Kiholm Smith, Richard L. Smith
2nd Edition
1503603210, 978-1503603219
