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You are considering borrowing $566,752 for 7 years, with yearly interest payments starting 1 year from today. Your cost of debt is 5.4, and
You are considering borrowing $566,752 for 7 years, with yearly interest payments starting 1 year from today. Your cost of debt is 5.4, and your tax rate is 30%. You have no other debt. What is the present value of the tax shield from this loan? Please give your answer to the nearest dollar.
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The present value of the tax shield from debt can be calculated using the formula PVTax ...
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Income Tax Fundamentals 2013
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
31st Edition
1111972516, 978-1285586618, 1285586611, 978-1285613109, 978-1111972516
