Question
Suppose a project financed via an issue of debt requires five annual interest payments of $10 million each year. If the tax rate is 21%
Suppose a project financed via an issue of debt requires five annual interest payments of $10 million each year. If the tax rate is 21% and the cost of debt is 7%, what is the value of the interest rate tax shield?
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Taxes And Business Strategy A Planning Approach
Authors: Myron Scholes, Mark Wolfson, Merle Erickson, Michelle Hanlon
5th Edition
132752670, 978-0132752671
