Question
Your firm currently has $108 million in debt outstanding with a 10% interest rate. The terms of the loan require the firm to repay $27
Your firm currently has $108 million in debt outstanding with a 10% interest rate. The terms of the loan require the firm to repay $27 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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Financial Management Principles And Practices
Authors: Sudhindra Bhat
2nd Edition
8174465863, 978-8174465863
