Establishment Industries borrows $1,040 million at an interest rate of 7.2%. It expects to maintain this debt

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Establishment Industries borrows $1,040 million at an interest rate of 7.2%. It expects to maintain this debt level into the far future. Establishment will pay tax at an effective rate of 38%.

What is the present value of interest tax shields?

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Fundamentals Of Corporate Finance

ISBN: 9781259087585

6th Canadian Edition

Authors: Stephen Ross, Randolph Westerfield, Bradford Jordan, Gordon Roberts

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Posted Date: Apr 26, 2024 02:00 AM

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Establishment Industries borrows $1,040 million at an interest rate of 7.2%. It expects to maintain this debt

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Fundamentals Of Corporate Finance

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