Question
Your firm currently has $92 million in debt outstanding with a 9% interest rate. The terms of the loan require it to repay $23 million
Your firm currently has $92 million in debt outstanding with a 9% interest rate. The terms of the loan require it to repay $23 million of the balance each year. Suppose 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?
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Finance For Real Estate Development
Authors: Charles Long
1st Edition
0874204305, 978-0874204308
