Question: also find $1,000 perpetuity at 7% Compute the present value of interest tax shields generated by these three debt issues. Consider corporate taxes only. Assume
Compute the present value of interest tax shields generated by these three debt issues. Consider corporate taxes only. Assume that the marginal tax rate is 7e = 0.35. a. A $1000, one-year loan at 8%. (Do not round intermediate calculations. Round your answer to 2 decimal places.) Presont value b. A five-year loan of $1,000 at 8%. Assume no principal is repaid until maturity (Do not round intermediate calculations. Round your answer to 2 decimal places.) Prosont value
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