Your firm currently has $116 million in debt outstanding with a 6 % interest rate. The terms

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Your firm currently has

$116 million in debt outstanding with a

6 % interest rate. The terms of the loan require the firm to repay

$ 29 million of the balance each year. Suppose that the marginal corporate tax rate is

35 %, 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?

Posted Date: Jun 24, 2024 01:11 PM

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Your firm currently has $116 million in debt outstanding with a 6 % interest rate. The terms

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