Question
Your firm currently has $ 88 million in debt outstanding with a nbsp 9 % interest rate. The terms of the loan require it to
Your firm currently has $ 88 million in debt outstanding with a nbsp 9 % interest rate. The terms of the loan require it to repay
$ 22 million of the balance each year. Suppose the marginal corporate tax rate is 40 %, and that the interest tax shields have the same risk as the loan. What is the present value of the interest tax shields from thisdebt? (Round to two decimal places)
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International Finance Putting Theory Into Practice
Authors: Piet Sercu
1st edition
069113667X, 978-0691136677
