You are considering borrowing $566,752 for 7 years, with yearly interest payments starting 1 year from...
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You are considering borrowing $566,752 for 7 years, with yearly interest payments starting 1 year from today. Your cost of debt is 5.4, and your tax rate is 30%. You have no other debt. What is the present value of the tax shield from this loan? Please give your answer to the nearest dollar. You are considering borrowing $566,752 for 7 years, with yearly interest payments starting 1 year from today. Your cost of debt is 5.4, and your tax rate is 30%. You have no other debt. What is the present value of the tax shield from this loan? Please give your answer to the nearest dollar.
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Answer rating: 100% (QA)
The present value of the tax shield from debt can be calculated using the formula PVTax ... View the full answer
Related Book For
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
Posted Date:
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