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Remor Inc. has a constant debt-to-equity ratio policy. Company earnings are taxed. The unlevered value of the $5,000,000. Nevertheless, the company has debt in
Remor Inc. has a constant debt-to-equity ratio policy. Company earnings are taxed. The unlevered value of the $5,000,000. Nevertheless, the company has debt in its capital structure. The levered wacc is 13% and the company has an expected unlevered, after-tax, perpetual cash flow of $700,000. What is the value of the interest tax shield for the company? company is
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Corporate Finance
Authors: Jonathan Berk and Peter DeMarzo
3rd edition
978-0132992473, 132992477, 978-0133097894
