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Show work in Excel (22-3) Tax Shield Value Wilde Software Development has a 12% unlevered cost of equity. Wilde forecasts the following interest expenses, which
Show work in Excel
(22-3) Tax Shield Value
Wilde Software Development has a 12% unlevered cost of equity. Wilde forecasts the following interest expenses, which are expected to grow at a constant 4% rate afterYear 3. Wilde's tax rate is 25%
____________________Year 1Year 2Year 3
Interest expense$80$100$120
a.What is the horizon value of the interest tax shield?
b.What is the total value of the interest tax shield at Year 0
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