Question
Your firm currently has $ 96 million in debt outstanding with a nbsp 9 % interest rate. The terms of the loan require it to
Your firm currently has $ 96 million in debt outstanding with a nbsp 9 % interest rate. The terms of the loan require it to repay
$ 24 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 decimalplaces.)
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International financial management
Authors: Jeff Madura
13th edition
978-1337099738, 1337099732, 9781337515894, 1337515892, 978-1337587211
