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rganisat Resources 1321 You are logged in as (Dingding, Jingyi Ding 25356208 Question 4 Not yet answered Dinkum Dampers Ltd has $48 million in permanent

rganisat Resources 1321 You are logged in as (Dingding, Jingyi Ding 25356208 Question 4 Not yet answered Dinkum Dampers Ltd has $48 million in permanent debt outstanding. The firm will pay interest only on this debt. Dinkum Dampers Ltd's marginal tax rate is expected to be 30.0% for the foreseeable future. Marked out of 6.00 A) Suppose Dinkum Dampers Ltd pays interest of 7.0% per year on its debt. What is its annual interest tax shield? Flag question The annual tax shield is $ million. (Round to 2 decimal places.) B) What is the present value of the interest tax shield, assuming its risk is the same as the loan? The present value of the interest tax shield is S million. (Round to 2 decimal places.) Previous page Next page

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