Question: Answer in Excel format please, thank you! 7. Compute the present value of interest tax shields generated by these three debt issues. Consider corporate taxes
Answer in Excel format please, thank you!
7. 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 Tc = 0.30. A. A $2,500, one-year loan at 6%. B. A five-year loan of $2,500 at 6%. Assume no principal is repaid until maturity. C. A $2,500 perpetuity at 5%
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