The present value of interest tax shields is often written as TcD, where D is the amount

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The present value of interest tax shields is often written as TcD, where D is the amount of debt and Tc is the marginal corporate tax rate. Under what assumptions is this present value correct?

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Principles of Corporate Finance

ISBN: 978-0077404895

10th Edition

Authors: Richard A. Brealey, Stewart C. Myers, Franklin Allen

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Question Posted: Dec 31, 2012 09:44 AM

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The present value of interest tax shields is often written as TcD, where D is the amount

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Principles of Corporate Finance

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