Wilde Software Development has a 10 unlevered cost of equity Wilde forecasts the following interest expenses, which are expected to grow at a constant 2 rate after Year 3 Wilde's tax rate is 25 Year 1 Year 2 Year 3 Interest expenses $85 $115 $130 What is the horizon value of the interest tax shield Do not round intermediate calculations Round your answer to the nearest cent $ What is the total value of the interest tax shield at Year 0 Do not round intermediate calculations Round your answer to the nearest cent $

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Question: Wilde Software Development has a 10% unlevered cost of equity. Wilde forecasts the following interest expenses, which are expected to grow at a constant 2%

Wilde Software Development has a 10% unlevered cost of equity. Wilde forecasts the following interest expenses, which are expected to grow at a constant 2% rate after Year 3. Wilde's tax rate is 25%.

	Year 1	Year 2	Year 3
Interest expenses	$85	$115	$130

What is the horizon value of the interest tax shield? Do not round intermediate calculations. Round your answer to the nearest cent.

$ _____________

What is the total value of the interest tax shield at Year 0? Do not round intermediate calculations. Round your answer to the nearest cent.

$ __________

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