Infosys Ltd has a market value of 3,000 billion. It has a marginal tax rate of 28

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Infosys Ltd has a market value of ₹3,000 billion. It has a marginal tax rate of 28 per cent.

The company decides to change its no borrowing policy to take on a leverage equalling 20 per cent of its current value. What is the value of the tax shield if the new leverage is likely to be permanent?

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Corporate Finance Theory And Practice In Emerging Economies

ISBN: 9781108486965

1st Edition

Authors: Sunil Mahajan

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Question Posted: Feb 24, 2024 03:01 AM

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Infosys Ltd has a market value of 3,000 billion. It has a marginal tax rate of 28

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The value of the tax shield can be calculated using the formula textValue of Tax S...View the full answer

Corporate Finance Theory And Practice In Emerging Economies

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