Question: 3. Problem 22-03 (Tax Shield Value) eBook Problem Walk Through Tax Shield Value Wilde Software Development has a 14% unlevered cost of equity. Wilde forecasts
3. Problem 22-03 (Tax Shield Value) eBook Problem Walk Through Tax Shield Value Wilde Software Development has a 14% unlevered cost of equity. Wilde forecasts the following interest expenses, which are expected to grow at a constant 24 rate after year 3. Wilde's tax rate is 25%. Year 1 Year 2 Year 3 Interest expenses $70 $95 5110 a. What is the horizon value of the interest tax shield? Do not round intermediate calculations. Round your answer to the nearest cent. $ b. What is the total value of the interest tax shield at Year O? Do not round intermediate calculations. Round your answer to the nearest cent. $
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