Your firm has a perpetually growing unlevered cash flow equal to 430,000. The growth rate is 2.00%.
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Your firm has a perpetually growing unlevered cash flow equal to 430,000. The growth rate is 2.00%. The firm keeps a constant debt-to-equity ratio equal to 26%. The interest rate on debt is 3.50%. If the unlevered return on equity is 8.25% and the tax rate is 36%, what is the present value of the interest tax shield?
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Value of firm can be computed as Cash Flow 1 Growth rate Unlevered ... View the full answer
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