Question
Your firm currently has $ 80 million in debt outstanding with an 8 % interest rate. The terms of the loan require the firm to
Your firm currently has $ 80 million in debt outstanding with an 8 % interest rate. The terms of the loan require the firm to repay
$ 20 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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A Fast And Frugal Finance
Authors: William P. Forbes, Aloysius Igboekwu, Shabnam Mousavi
1st Edition
0128124954, 978-0128124956
