Question: 3. Problem 22-03 (Tax Shield Value) Problem Walk-Through Book Tax Shield Value Wilde Software Development has an 110 unlovered cost of aquity, Wilde forecasts the

 3. Problem 22-03 (Tax Shield Value) Problem Walk-Through Book Tax Shield

3. Problem 22-03 (Tax Shield Value) Problem Walk-Through Book Tax Shield Value Wilde Software Development has an 110 unlovered cost of aquity, Wilde forecasts the following interest expenses, which are expected to grow at a constant 2 rate after year Wilde's tax rate is 25% Year 1 Year 2 Year 3 $35 $115 $130 Interest expenses 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 5

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