Botero, Inc. has $18,000 of perpetual debt outstanding that is selling at 103 percent of par...

 

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Botero, Inc. has $18,000 of perpetual debt outstanding that is selling at 103 percent of par and has a coupon rate of 7.5 percent. The tax rate is 21 percent. What is the present value of the tax shield on debt? $3,780 O $2,950 O $2,500 $3,190 $2.180 Botero, Inc. has $18,000 of perpetual debt outstanding that is selling at 103 percent of par and has a coupon rate of 7.5 percent. The tax rate is 21 percent. What is the present value of the tax shield on debt? $3,780 O $2,950 O $2,500 $3,190 $2.180

Answer rating: 100% (QA)

We have given perpetual debt 18000 Coupon rate 75 C... View the full answer