Begin by analyzing the scenario with $1 billion in new debt. Assuming the firm plans to keep

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Begin by analyzing the scenario with $1 billion in new debt. Assuming the firm plans to keep this new debt outstanding forever, determine the present value of the tax shield of the new debt. What additional assumptions did you need to make for this calculation?

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Corporate Finance

ISBN: 9780134999463

5th Edition

Authors: Jonathan Berk, Peter DeMarzo

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