Question
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
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 30% 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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International Finance Transactions Policy And Regulation
Authors: Hal S. Scott
15th Edition
159941547X, 978-1599415475
