Your firm currently has $116 million in debt outstanding with a 8% interest rate. The terms of
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Your firm currently has $116 million in debt outstanding with a 8% interest rate. The terms of the loan require it to repay $29 million of the balance each year. Suppose 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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Related Book For
Corporate Finance The Core
ISBN: 9781292158334
4th Global Edition
Authors: Jonathan Berk, Peter DeMarzo
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