Your firm currently has $92 million in debt outstanding with a 7% interest rate. The terms of
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Your firm currently has $92 million in debt outstanding with a 7% interest rate. The terms of the loan require the firm to repay $23 million of the balance each year. Suppose that the marginal corporate tax rate is 30%, and that the interest tax shields have the same risk as the loan. What is the present value of the interest tax shields from this debt?
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Present Value of Interest Tax Shields To calculate the present value of the interest tax shieldswe n...View the full answer
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Related Book For 
Fundamentals Of Corporate Finance
ISBN: 9781292437156
5th Global Edition
Authors: Jonathan Berk, Peter DeMarzo, Jarrad Harford
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