Question
Your firm currently has $104 million in debt outstanding with a 10% interest rate. The terms of the loan require the firm to repay $26
Your firm currently has $104 million in debt outstanding with a 10% interest rate. The terms of the loan require the firm to repay $26 million of the balance each year. Suppose that the marginal corporate tax rate is , 21%and that the interest tax shields have the same risk as the loan. What is the present value of the interest tax shields from this debt?
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Competing On Analytics The New Science Of Winning
Authors: Thomas H Davenport, Jeanne G Harris, Gary Loveman
1st Edition
1422103323, 9781422103326
