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Wilde Software Development has a 9% unlevered cost of equity. Wilde forecasts the following interest expenses, which are expected to grow at a constant 5%

Wilde Software Development has a 9% unlevered cost of equity. Wilde forecasts the following interest expenses, which are expected to grow at a constant 5% rate after Year 3. Wilde's tax rate is 25%.

Year 1 Year 2 Year 3
Interest expenses $80 $110 $135

  1. What is the horizon value of the interest tax shield? Do not round intermediate calculations. Round your answer to the nearest cent.

    $

  2. What is the total value of the interest tax shield at Year 0? Do not round intermediate calculations. Round your answer to the nearest cent.

    $

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