Assume that a firm which previously held no debt decides to borrow $50 million in debt. It

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Assume that a firm which previously held no debt decides to borrow $50 million in debt. It plans to hold this exact amount of debt forever.

What is the present value of the firm's interest tax shield, assuming a 21 percent marginal corporate tax rate?

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Corporate Finance A Focused Approach

ISBN: 978-1305637108

6th edition

Authors: Michael C. Ehrhardt, Eugene F. Brigham

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Posted Date: Jun 15, 2023 01:19 AM

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Assume that a firm which previously held no debt decides to borrow $50 million in debt. It

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The present value of the firms interest tax shield can be calculated using the for... View the full answer

Corporate Finance A Focused Approach

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